If a good is not produced, then there is no demand for it
Indicate whether the statement is true or false
False. The demand for a product is independent of its supply. It is possible that people want to buy some of the product but at prices that are below what sellers would require to begin production.
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Because of the weak systems of property rights in many developing and transition economies, the financial system is unable to use collateral effectively worsening the ________ problem
A) adverse selection B) moral hazard C) principal/agent D) diversification
Subprime mortgage is a mortgage for a borrower with a good credit rating
Indicate whether the statement is true or false
If a bank has deposits of $250 million, reserves that total $30 million and has a required reserve rate of 10 percent:
A. the bank is short of required reserves. B. the bank has excess reserves of $3 million. C. the bank has excess reserves of $27.5 million. D. the bank has excess reserves of $5 million.
If supply is perfectly inelastic, a sales tax imposed on sellers is paid by
A) only the buyers. B) only the sellers. C) both the buyers and sellers. D) None of the above answers is correct.