Interest-rate ceilings on deposits:
a. meant banks were guaranteed "cheap money" from depositors
b. were imposed because without them, as was the case in the 1970s, banks couldn't be profitable.
c. led to banks losing deposits whenever market rates went above the ceiling rates.
d. are only effective when market rates are below the ceiling rates.
e. were developed by money market mutual funds as a marketing device.
c
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Suppose an American worker can make 100 chairs or catch 900 fish per day. On the other hand, a Chilean worker, can make 40 chairs or catch 400 fish per day. The United States has an absolute advantage in the production of both fish and chairs. This means that the United States:
A. should produce only chairs and trade with Chile to get fish. B. should produce only fish and trade with Chile to get chairs. C. should take advantage of Chile by trading with them. D. can produce more fish and chairs than Chile given the same amount of workers.
A dominant strategy exists if:
A. both players make the same choice. B. one strategy yields the highest possible payoff. C. both players have the highest payoff when they make the same choice. D. a player has a strategy that yields the highest payoff regardless of the other player's choice.