If the First National Bank has a gap equal to a negative $30 million, then a 5 percentage point increase in interest rates will cause profits to
A) increase by $15 million.
B) increase by $1.5 million.
C) decline by $15 million.
D) decline by $1.5 million.
D
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A minimum wage that is set below the equilibrium wage will
a. cause increased unemployment b. have no effect on employment c. cause the overall wage to increase d. cause the overall wage to decrease e. create more jobs
People can borrow and lend money to smooth out short term variations in income known as what kind of changes?
A person 16 years or older who does not work, but is actively looking for work, is officially classified as:
A. employed. B. out of the labor force. C. unemployed. D. chronically unemployed.
Assuming food and beverages make up about 15 percent of total expenditures and food and beverage prices rise by 10 percent while the other components of the price index remain constant, approximately by how much will the price index rise?
A. 25 percent B. 15 percent C. 1.5 percent D. 1 percent