In 2008, several banks had a:
A. solvency problem, and the Fed kept them all from going bankrupt.
B. confidence problem, and would not lend enough to keep from going bankrupt.
C. solvency problem, and eventually went bankrupt as a result.
D. reserve problem, and did not have enough funds on hand to lend to keep from going bankrupt.
C. solvency problem, and eventually went bankrupt as a result.
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Adam Smith noted in 1776 that
A. the wealth of nations comes from the money the nations have accumulated. B. the wealth of nations comes from the gold the nations have accumulated. C. the wealth of nations comes from the resources that produce the nation's goods and services. D. the problem of scarcity had been licked.
Assume someone organizes all farms in the nation into a monopoly. What is the monopoly's marginal cost curve?
A) It is a horizontal line at the competitive industry's price. B) It is a vertical line at the formerly competitive industry's quantity. C) It is a vertical line at the monopoly's chosen output level. D) It is the formerly competitive industry's supply curve. E) It is the same as the formally competitive industry's average total cost curve.
Which of the following is NOT a determinant of household saving?
A) the nominal interest rate B) disposable income C) the household's wealth D) expected future income
If the expected rate of inflation is zero, the real interest rate must
a. also equal zero. b. be greater than the money (nominal) interest rate. c. be equal to the money (nominal) interest rate. d. be less than the money (nominal) interest rate.