Funds are channeled from savers to borrowers directly through ________ and indirectly through ________
A) financial markets; financial intermediaries
B) financial intermediaries; financial markets
C) main banks; branches
D) brokers;' agents
A
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What is the function of the system of federal regulation created by Congress from 1887 until now?
(a) To change the outcomes of market decisions (b) To enforce the outcomes of market decisions (c) To replace market allocations with economic planning (d) To enforce the law
The deadweight loss of taxation from an income tax is because of _____
a. the inclusion of savings in the tax base b. the Laffer curve c. the income effect d. the substitution effect
According to Walton and Rockoff, Keynesian economists would probably argue that Keynesian policies failed to alleviate the Great Depression because _____
a. monetary policy was contractionary b. government spending was disproportionately concentrated on poor relief c. supply-side shocks offset Keynesian policies d. Keynesian policies were never tried on a sufficient scale
Microeconomics is the study of
a. marginal or inferior products b. the economic behavior of individual decision makers c. the behavior of the economy as a whole d. how to use the fewest natural resources to produce goods and services e. government's role as a producer in the economy