According to Regulation Q, the maximum interest rate that the U.S. banks could pay on deposits was limited by the Federal Reserve. This reduced volatility in the financial markets and largely benefited the U.S. banks
a. True
b. False
Indicate whether the statement is true or false
False
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Answer the following statement(s) true (T) or false (F)
1. When formulating an economic model, one must explicitly identify both an agent's objectives and his constraints. 2. Costs are forgone opportunities. 3. The first step in economic analysis is to choose an appropriate equilibrium condition. 4. An economic problem can be defined as any problem involving money. 5. Economists focus only on real world consumer choices.
Refer to Table 9-14. The percentage change in real average earnings from 1965 to 2010 equals
A) 2.0 percent. B) 19.7 percent. C) 24.6 percent. D) 80.3 percent.
Suppose the government introduced a ceiling on lawyers' fees
How would the amount of work done by lawyers, the consumer surplus of people who hire lawyers, and the producer surplus of law firms change? Would this fee ceiling result in an efficient and fair use of resources? Why or why not?
Suppose a consumer has preferences over two goods, X and Y, which are perfect substitutes. In particular, two units of X is equivalent to one unit of Y. If the price of X is $1, the price of Y is $3, and the consumer has $30 of income to allocate to these two goods, how much of each good should the consumer purchase to maximize satisfaction?
a. 30 units of X and 0 units of Y b. 0 units of X and 10 units of Y c. 15 units of X and 5 units of Y d. 15 units of X and 0 units of Y