Microprudential supervision focuses on the safety and soundness of
A) individual financial institutions.
B) the financial system as a whole.
C) the shadow banking system.
D) government credit agencies.
A
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Production efficiency requires that
A) the economy be producing on the PPF but the marginal cost of a good does not need to equal its marginal benefit. B) the economy be producing on the PPF and that the marginal cost of a good equals its marginal benefit. C) the marginal cost of a good equals its marginal benefit but the economy does not need to be producing on its PPF. D) the society be producing at the point of allocative efficiency. E) opportunity costs be minimized.
Outline the principal sources of the debt crisis
What will be an ideal response?
The basic liberal solution to welfare dependency is
A. government jobs. B. forcing the poor off welfare. C. ending immigration. D. identical to the conservative solution.
In an economic downturn, sticky wages and prices reduce the economy's speed of adjustment because
A. hyperinflation will likely occur. B. they cause deflation. C. union workers would likely quit and look for work elsewhere. D. businesses are unable to adjust quickly to changes in aggregate demand.