If depositors become worried about the safety of their deposit accounts, they may trigger a
a. deposit surplus.
b. bank run.
c. fiscal policy crisis.
d. required reserve increase.
b
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National saving is
A) the sum of private saving and government saving. B) reduced by government budget deficits. C) the sum of private saving and the government budget deficit or surplus. D) all of the above.
Figure 11-1
In Figure 11-1, to achieve equilibrium at potential GDP the government could
a.
increase taxes.
b.
decrease transfer payments.
c.
increase government purchases.
d.
None of the above is correct.
Exhibit 4-10 Supply and demand data for apricots Bushels demandedper month Price perbushel Bushels suppliedper month 50 $5 80 55 4 75 60 3 70 65 2 65 70 1 55 In Exhibit 4-10, assume that the government initially sets a price floor of $4 for apricots, and then removes the $4 price floor. What effect will this price change have?
A. The price of apricots will rise. B. The quantity of apricots demanded will fall. C. The quantity of apricots supplied will decline. D. Quantity supplied will continue to exceed quantity demanded.
If you believe that expectations react slowly, you are likely
A. a believer in rational expectations. B. a Keynesian. C. a theoretical economist. D. None of the above is correct.