The financial crisis of 2007-2009 has made which of the following regulatory goals a top priority for government:
A. minimum capital requirements.
B. promotion of competition.
C. disclosure of accounting information.
D. avoidance of systemic risk.
Answer: D
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If the economic growth rate INCREASES from 1% to 5%, the simple accelerator hypothesis suggests that
A) investment will continue to rise as output increases. B) investment will fall as output increases. C) investment will rise since the rate of change in output increases. D) None of the above is correct.
With a reserve ratio of 10 percent, the maximum potential money multiplier is
A) 1. B) 5. C) 10. D) 100.
Baseball Cards Your favorite uncle left you his baseball card collection in his will. Since you are not a fan, you auction them off on an Internet website. Since nothing was created, how could this decision have created wealth?
Refer to the information provided in Figure 30.1 below to answer the question(s) that follow.
Figure 30.1Refer to Figure 30.1. Growth in aggregate output causes a ________ through the accelerator effect.
A. shift from Point B to Point C B. shift from Point C to Point B C. shift from I2 to I3 D. shift from I3 to I2