During a financial crisis the possibility of bank failures rises. An increase in the likelihood of a bank failing shifts demand for its stock
a. right, so the price rises.
b. right, so the price falls.
c. left, so the price rises.
d. left, so the price falls.
d
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Unanticipated inflation is associated with cost increases which are not expected
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When there are three or more options, plurality-rule voting does a good job of capturing the preferences of voters
Indicate whether the statement is true or false
To maximize profits, the firm in Figure 7.3 will charge:
A. P1. B. P2. C. P3. D. P4.
By the mid-1980s, the United States
A. changed from a creditor nation to a debtor nation. B. was neither a creditor nation or a debtor nation, as its current account and capital account were both valued at zero. C. was both a creditor nation and a debtor nation, as its balance of payments was equal to zero. D. changed from a debtor nation to a creditor nation.