A bank would be considered insolvent when the value of its liabilities exceed its
A. assets.
B. required reserves.
C. actual reserves.
D. net worth.
Answer: A
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Refer to Goods X and Y. Which of the following can cause a parallel, outward shift in the budget line?
Assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions. a. A rise in the consumer's income. b. A rise in the marginal value of X in terms of Y. c. A fall in the price of good X. d. A fall in the price of good Y.
If the price level increases by more than expected, output can be expected to decrease as a result
a. True b. False Indicate whether the statement is true or false
A corrective tax equal to the external cost imposed on third parties levied on polluters will: a. eliminate all pollution
b. increase the level of pollution. c. force polluters to internalize the external cost resulting from their actions. d. usually have no impact whatsoever on pollution levels, but will generate tax revenue for the government.
Who from among the following would be classified as out of the labor force?
A. A person who is willing to work but has not looked for a job in two months. B. A person who is willing to work and has looked for a job in the last week. C. A person with a part-time job who wants and is looking for a full-time job. D. None of these people would be classified as out of the labor force.