Why were banking panics and failures largely eliminated after 1933?
a. There were fewer recessions.
b. There was more government spending.
c. All U.S. currency began to be backed by gold.
d. Congress created deposit insurance.
e. The banking sector became less important as the US became a more trade-oriented economy.
D
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In the one-period valuation model, the value of a share of stock today depends upon
A) the present value of both the dividends and the expected sales price. B) only the present value of the future dividends. C) the actual value of the dividends and expected sales price received in one year. D) the future value of dividends and the actual sales price.
It is estimated that a 10 percent inflation in the United States would bear a shoe-leather cost of approximately ________ percent of GDP
A) 15 B) 6 C) 2 D) 0.25
The primary distinction between an expenditure that is on budget and an expenditure that is off budget is _____
a. that all off-budget expenditures are entitlements b. that all on-budget expenditures are public goods or quasi-public goods c. that Congress has determined the expenditures should be on budget or off budget d. a and b
The abnormal net income model
A) assumes that economic profits cannot be earned in the short run. B) assumes that economic profits cannot be earned in the long run. C) employs economic profit in its valuation of a firm. D) none of these choices.