If people accurately speculate that a run on one bank will result in a run on all banks, the financial system would experience what is known as a
A) financial death spiral.
B) clearinghouse collapse.
C) bank panic.
D) commodity crisis.
C
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One of the most serious weaknesses in the Medicare system is that
a. patients are not able to choose their own physicians. b. the definition of an episode of illness is too restrictive. c. it provides poor insurance coverage for unusually long hospital stays. d. patients must pay a deductible every time they enter the hospital. e. Part B is voluntary.
If exports increase, then the aggregate expenditure curve shifts ________ and equilibrium expenditure ________
A) upward; decreases B) upward; increases C) downward; increases D) downward; decreases E) upward; does not change
The risk premium that risk averse investors will demand on a security will be in proportion to the __________ of the portfolio
A) systematic risk B) nonsystematic risk C) risk of the worst case return D) diversification
Some electrical utilities are monopolies because of
A) government restrictions that prevent new firms from entering the market. B) ownership of resources without close substitutes. C) diseconomies of scale. D) their inability to earn profits.