Money demand is given by Md/P = 1000 + .2Y - 1000i.Given that P = 200, Y = 2000, and i = .10, real money demand is equal to
A. 1300.
B. 300,000.
C. 1500.
D. 260,000.
Answer: A
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As a bank's assets become less risky, its
A) risk-based capital ratio rises. B) risk-based capital ratio falls. C) leverage ratio rises. D) leverage ratio falls.
A problem of adverse selection can be addressed by
A) by teaching ethics in business schools. B) creating a positive externality. C) government regulation. D) collecting more information.
Unionism is much more prevalent in the United States than in other industrialized countries
a. True b. False Indicate whether the statement is true or false
All of the following are true EXCEPT
A) trade between two nations reduces their opportunity costs. B) trade makes nations dependent on each other. C) trade between nations will not benefit all citizens. D) the principle of comparative advantage does not apply to countries with limited resources.