The fact that banks operate on a "sequential service constraint" means that
A) all depositors share equally in the bank's funds during a crisis.
B) depositors arriving last are just as likely to receive their funds as those arriving first.
C) depositors arriving first have the best chance of withdrawing their funds.
D) banks randomly select the depositors who will receive all of their funds.
C
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Suppose that equilibrium income is 3200 and the multiplier is 2.38. Equilibrium income would rise to 3400 if planned investment
A) rises by 84.03. B) rises by 476. C) falls by 84.03. D) falls by 476.
The GDP deflator is:
A. a measure of the overall change in prices in an economy, using the ratio between real and nominal GDP. B. one way of summarizing how prices have changed across the entire economy. C. a weighted average of all of the individual price changes in the economy. D. All of these statements are correct.
All else equal, if there are diminishing returns, then if a country raised its capital by 100 units last year and by 100 units this year,
a. the increase in output was greater for this year than last year. b. the increase in output was greater last year than this year. c. the increase in output is the same in both years. d. None of the above is necessarily correct.
Suppose someone knew that the probability of incurring a $10,000 medical expense was 5%, and the odds of being healthy and incurring no expenses was 95%. If they used that information to compare the expected cost to them ($500) with the $500 premium it would cost to get full coverage and decided to buy the insurance, but only if the price went no higher then economists would say, they are
A. risk-neutral. B. risk-loving. C. risk-averse. D. irrational.