When the economy is at full employment,
a. people are not inclined to borrow so the banking system is unlikely to loan out themaximum allowable
b. firms are inclined to borrow to finance investment so the banking system is likely to end up with little and possibly no excess reserves
c. firms are disinclined to borrow because investment opportunities are fewer in full employment so the banking system has considerable excess reserves
d. bankers become more hesitant to lend money because they are not very confident in the future
e. inflation is high, which undermines people's willingness to borrow so the banking system must lower the interest rate to induce borrowing
B
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In the short-run macro model, which of the following is the cause of cyclical unemployment?
a. It takes time for people to move to new jobs. b. Insufficient aggregate spending. c. It takes time for firms to find new employees. d. It takes time for people to retrain. e. Fewer people want to work than before.
Command and control regulations do which of the following?
a. Provide incentives for firms to invent new technology to clean up pollution. b. Dictate what firms can produced and how much of a good they can produce. c. Dictate the amount of pollution firms allowed to production and/or the type of technology that must be used by the firm. d. Provide greater flexibility for each firm to lower the pollution it creates in its own way.
Which of the following topics is not a part of a typical scenario plan?
a. Expected changes in corporate governance practices. b. Expected changes in labor-management relations. c. Expected changes in government intervention and regulations. d. Expected changes in country infrastructure. e. Expected changes in budgets and capital budgeting projects.
If Max experiences a decrease in his income, then we would expect Max's demand for
a. each good he purchases to remain unchanged. b. normal goods to decrease. c. luxury goods to increase. d. inferior goods to decrease.