What is the central role of financial intermediaries in a market economy?
A) keeping the price level stable
B) bringing together savers and borrowers
C) providing safe deposit boxes for people and businesses
D) the creation and printing of money
B
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Suppose Campus Books, a profit-maximizing firm, is the only supplier of the textbook for a given class. The marginal cost of supplying each book is constant and equal to $10, and Campus Books has no fixed costs. The table below shows the reservation prices of the eight students enrolled in the class.StudentReservation Price($/Book)Q60R54S48T42U36V30W24X18 How many books will Campus Books sell if it must charge a single price to all of its customers?
A. 5 B. 7 C. 3 D. 4
The amount of deposits that banks must hold in reserve is
A) excess reserves. B) required reserves. C) total reserves. D) vault cash.
Suppose Always There Wireless serves 100 high-demand wireless consumers, who each have a monthly demand curve for wireless minutes of QdH = 200 - 100P, and 300 low-demand consumers, who each have a monthly demand curve for wireless minutes of QdL = 100 - 100P, where P is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always There Wireless charges $0.35 per minute. If Always There Wireless charges the highest fixed fee that it can without losing the low-demand consumers, what is Always There Wireless's total profit?
A. $11,250 C. $11,050 D. $8,450
If an economy's actual GDP exceeds its potential GDP, _____
a. wages and prices must fall b. self-correcting forces will shift the SRAS curve to the left c. self-correcting forces will shift the AD curve to the left d. inflation will occur when AD shifts to the left e. unemployment is likely to be unusually high