Banks and other financial institutions:
A. are the primary investors in equipment, factories, and other capital goods.
B. lack relevance in the modern economy because they focus primarily on financial assets
and generally do not engage in real investment activity.
C. promote economic growth by helping to direct household saving to businesses that want to
invest.
D. often hinder economic activity by creating barriers between household savers and firms
wanting to invest in capital goods.
Answer: C
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What type of statement is a descriptive statement about how the world is?
Recall the Application about how having car insurance affects driving behavior to answer the following question(s).Recall the Application. Based on the results of studies mentioned in the Application, what should we do with mandatory/compulsory insurance?
A. We should conduct more studies to compare the benefits of fully insured vehicles to the costs, including the increase in fatalities on more hazardous roads. B. We should ban all insurance because mandatory insurance results in more fatalities. C. We should allow mandatory insurance, but the government should pay for it. D. We should ban driving altogether, to decrease automobile deaths.
Since 1929, the distribution of money income in the United States has
A) become slightly more unequal. B) not dramatically changed. C) become more equal. D) shifted toward the poorer 20 percent away from the richer 20 percent.
When the price of oysters decreases 25%, quantity demanded increases 10%. The price elasticity of demand for oysters is ________ and total revenue from oyster sales will ________.
A. inelastic; decrease B. elastic; decrease C. inelastic; increase D. elastic; increase