Which of the following will increase macroeconomic equilibrium prices?
A. an increase in productivity
B. an increase in taxes
C. a decrease in input prices
D. an increase in government spending
Answer: D
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In the United States, runs on banks are prevented because
A) banks are forbidden to make unprofitable loans. B) banks have the option of denying depositors access to their funds. C) the government guarantees bank accounts for up to $250,000. D) banks keep 100 percent of their deposits on hand.
During a recession, the unemployment rate ________ and the percentage of part-time workers who are involuntary part-time workers ________
A) rises; rises B) rises; falls C) falls; rises D) falls; falls E) rises; does not change
The optimal level of air quality will increase if
a. the cost of polluting increases b. pollution is found to be self-absorbing c. a new process allows pollution to be removed more cheaply d. the marginal social cost of air quality increases e. the marginal social benefit of air quality decreases
Financial intermediaries make the allocation of resources more efficient by
A. Lending or investing the savings they hold. B. Reducing search and information costs in the financial markets. C. Transferring purchasing power from savers to dissavers. D. Spreading risk out over many individuals.