When interest rates fall a bank's capital will usually:
A. increase.
B. turn negative.
C. not change.
D. decrease.
Answer: A
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A firm should shut down if its total revenue is less than its ________ even when the firm produces the level of output at which price equals marginal cost.
A. marginal cost. B. fixed cost. C. total cost. D. variable cost.
Automatic stabilizers
A) are never altered. B) often make any downturn in the economy worse. C) must be determined by the Congress in each budget. D) work counter-cyclically to moderate the business cycle.
How does a rise in the foreign exchange rate affect aggregate demand in the United States? Explain your answer
What will be an ideal response?
Income tax on the wealthy to finance the welfare for the poor causes income redistribution. This is an example for the trade-off
A) Which goods and services to produce. B) How to produce. C) Who gets the goods and services. D) Who produces the goods and services.