When a foreign company engages in riskier behavior after it has received international investment funds, it is known as
A) portfolio investment.
B) moral hazard.
C) foreign direct investment.
D) adverse selection.
B
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A small commercial bank has $10,000 in actual reserves, $60,000 in deposits, and has a 10 percent desired reserve ratio. Its excess reserves are
A) $4,000. B) $10,000. C) $50,000. D) $6,000.
If the consumption function is C = 20 + 0.8YD, then an increase in disposable income by $100 will result in an increase in consumer expenditure by
A) $58. B) $64. C) $80. D) $100.
Survivability in a perfectly competitive world requires that
A) firms minimize average total cost. B) firms produce new and different products. C) firms maximize profit. D) firms maximize revenue.
In a competitive market for corn, the law of demand indicates that, other things equal, as:
a. The price of corn decreases, the quantity of corn demanded will decrease b. Income decreases, the quantity of corn demanded will increase c. The demand for corn decreases, the price will increase d. The price of corn rises, the quantity of corn demanded will fall