It should be possible to avoid intensifying crises when there are weak financial sectors if
A) banks pay closer attention to the maturity match between their debts and assets.
B) governments do not run budget deficits.
C) current account deficits are moderate.
D) banks do not lend to unworthy creditors.
A
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Refer to Table 11.1. What is the equilibrium level of output, y*?
A) 1,775 B) 2,375 C) 7,100 D) 9,500
Which of the following conditions is least likely to make a corporation a takeover target?
a. high asset-to-liability ratio b. little stock owned by corporate management c. few shares owned by the corporation d. a nonmanagement group of owners of significant shares e. satisfaction with corporate earnings and direction
Nonprice competition refers to:
A. competition between products of different industries, for example, competition between aluminum and steel in the manufacture of automobile parts. B. price increases by a firm that are ignored by its rivals. C. advertising, product promotion, and changes in the real or perceived characteristics of a product. D. reductions in production costs that are not reflected in price reductions.
Which of the following statements is an example of positive economic analysis?
A) The inflation rate is too high. B) The government should worry less about inflation and more about unemployment. C) If the government increases the rate of growth of the money supply, the inflation rate will increase, ceteris paribus. D) The elderly live on a fixed income, so the government has an obligation to keep inflation rates low.