Runs on banks occur when
A) banks keep 100 percent of their deposits on hand.
B) depositors are confident that the bank will not go bankrupt.
C) banks make an unusually high number of profitable loans.
D) many depositors attempt to withdraw their funds simultaneously.
D
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Which of the following questions would economists most likely disagree about?
a. What will be the effect of the new minimum wage on the sales of a product? b. How much should a company increase the price of a product? c. How much will demand increase for a product if the price decreases by 2 percent? d. What will be the increase in production with new technology in place?
Classical economists believe that:
A. velocity is not constant. B. changes in the money supply affect real GDP. C. the quantity of money explains prices. D. the money supply affects velocity.
If we assume competitive labor markets, the supply curve of labor when the firm is a monopoly is
A) upward sloping. B) vertical. C) horizontal. D) downward sloping.
If reserves are __________ because of a temporary __________ in the Treasury's balance at the Fed, open market __________ may be used to offset such influences
A) falling; decline; sales B) rising; increase; sales C) rising; decline; sales D) rising; decline; purchases