The Bank of Techland is the largest bank in Techland. Which of the following is likely to be true if this bank fails?
A) Real interest rates in Techland will fall. B) Labor supply in Techland will fall.
C) Real wages in Techland will remain unchanged. D) Techland's output will fall.
D
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If inflation is higher than expected, then lenders receive interest payments whose real values are less than they expected
a. True b. False Indicate whether the statement is true or false
Derrick loses his job, but does not look for work. Which of the following are consequences of this change in Derrick's status?
a. unemployment rises and the labor force is unchanged b. unemployment rises and the labor force falls c. unemployment and the labor force are unchanged d. unemployment is unchanged and the labor force falls
The extra cost that results from carrying out one additional unit of an activity is the ________ of the activity.
A. marginal benefit B. reservation cost C. marginal cost D. opportunity cost
When the yield curve is downward sloping:
A. people are expecting an economic slowdown. B. people are expecting higher inflation in the future. C. short-term yields are lower than long term yields. D. people could be expecting a tightening in monetary policy.