What happens during a bank run?
a. The government orders a bank to close.
b. States charter more banks than needed.
c. The price of gold suddenly increases.
d. More customers withdraw money than the bank has on hand.
Answer: More customers withdraw money than the bank has on hand.
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You interview with an athletic footwear manufacturer that has annual advertising expenditures of $32 million and total sales revenue of $100 million, and the firm selects the profit maximizing level of advertising expenditures
If the advertising elasticity of demand is 0.4, then you know that "Rule of Thumb for Advertising" implies that the demand for the firm's products is: A) inelastic. B) unit elastic. C) elastic. D) zero.
Regulating firms so that they always receive a guaranteed profit rate will lead to greatest efficiency.
Answer the following statement true (T) or false (F)