Because transactions deposits can be withdrawn at any time, banks are exposed to
A) credit risk.
B) liquidity risk.
C) trading risk.
D) interest risk.
B
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If a monopolistically competitive firm is suffering losses in the short run:
A. the exit of competing firms will shift the firm's demand to the right. B. the exit of competing firms will shift the firm's demand to the left. C. the exit of competing firms will cause price to drop, but not affect the firm's demand curve. D. the exit of competing firms will cause price to rise, but not affect the firm's demand curve.
Suppose the government taxes the wealthy at a higher rate than it taxes the poor and then develops programs to redistribute the tax revenue from the wealthy to the poor. This redistribution of wealth
a. is more efficient and more equal for society. b. is more efficient but less equal for society. c. is more equal but less efficient for society. d. is less equal and less efficient for society.
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