Banks do not create money when they make loans
a. True
b. False
Indicate whether the statement is true or false
False
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The figure shows two Lorenz curves. Suppose both Lorenz curves measure income. Lorenz curve A shows ________ Lorenz curve B
A) income is more equally distributed than the income shown in B) income is less equally distributed than the income shown in C) the first quintile earns less income than the first quintile earned in D) the fifth quintile earns more income than the fifth quintile earned in
During a "flight to quality"
A) the spread between Treasury bonds and Baa bonds increases. B) the spread between Treasury bonds and Baa bonds decreases. C) the spread between Treasury bonds and Baa bonds is not affected. D) the change in the spread between Treasury bonds and Baa bonds cannot be predicted.
Before their merger, XM and Sirius were competing sellers in the U.S. satellite radio market. The U.S. Department of Justice allowed the merger even though it created a single seller in the market
Why might we expect this merger to have limited impact on U.S. consumers? A) There are many close substitutes for satellite radio service (e.g., free AM-FM radio, internet radio) B) The merged firm is likely to act on behalf of its customers and keep its prices and profits low C) U.S. consumers are known to have perfectly inelastic demand for satellite radio (i.e., they are unresponsive to price changes) D) all of the above are correct
A decision to join a free trade association, such as NAFTA, is an example of ________ policy.
A. monetary B. structural C. fiscal D. normative