During a time of rising asset values, a bank can increase its returns by engaging in regulatory capital arbitrage
Indicate whether the statement is true or false
True
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Which of the following categories account for the smallest fraction of unemployed workers?
a. Job leavers b. Job losers c. Reentrants d. New entrants
Disclosing information in more usable ways to decision-makers:
A. increases instances of rational ignorance. B. can nudge people toward making better decisions. C. will never affect a person's decision. D. effectively eliminates certain choices from a person's options.
The incentive problem under communist central planning refers to the idea that:
A. planners had to direct required inputs to each enterprise. B. workers, managers, and entrepreneurs could not personally gain by responding to shortages or surpluses or by introducing new and improved products. C. the immediate effect of more investment was less consumption. D. exports had to be equal to imports for a central plan to work.
In some markets consumers may buy many different brands of a product. Which of the statements below best represents a situation where demand for a particular brand would be very elastic?
A. "The different brands are almost identical. I always buy the cheapest" B. "I use so little of that product that when I do buy it, I don't pay much attention to the price" C. "The brand I buy is so superior to other available brands that I hardly consider the others" D. "I pinch pennies in buying other products, but like most people I feel I owe it to myself to get the best brand of this product"