Which of the following is an example of a bank functioning as a financial intermediary?
a. Bank A, which has a vault facility where its clients can keep their valuable documents
b. Bank B, which has an excellent reputation for stability and sound investment
c. Bank C, which pays its employees better than average salaries
d. Bank D, which provides many small businesses with start-up capital
d
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The starting point of many methods for predicting equilibrium strategy in sequential games is
a. designing proactive reactions to rival actions b. information sets c. uncertain outcomes d. backwards induction based on an explicit order of play e. endgame analysis
Identify the correct statement
a. Investment is positively related to the interest rate. b. Investment spending in an economy is stimulated by new production technology. c. Investment is positively related to excess capacity. d. Investment spending is positively related to the cost of capital goods. e. Investment is negatively related to the rate of government spending.
What is one reason suppliers might offer a discount for quantity purchases?
A) reduced storage costs B) lower marginal cost C) lower marginal benefit D) price gouging
Refer to the diagram, where S d and D d are the domestic supply and demand for a product and P c is the world price of that product. With a P c P t per-unit tariff, per-unit revenue received by domestic and foreign producers respectively will be:
A. P c and P a .
B. P a and P c .
C. P a and P t .
D. P t and P c .