Competition between banks
A) encourages greater risk taking.
B) encourages conservative bank management.
C) increases bank profitability.
D) eliminates the need for government regulation.
A
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An increase in the capital stock shifts
a) short-run aggregate-supply curve to the left and long-run aggregate-supply curve to the right. b) short-run aggregate-supply curve to the right but does not shift long-run aggregate-supply curve. c) long-run aggregate-supply curve to the right but does not shift short-run aggregate-supply curve. d) both short-run and long-run aggregate-supply curve to the right.
When a shortage exists in a market, sellers
a. raise price, which increases quantity demanded and decreases quantity supplied until the shortage is eliminated. b. can raise price without worrying about the loss of sales, which increases quantity supplied and decreases quantity demanded until the shortage is eliminated. c. lower price, which increases quantity demanded and decreases quantity supplied until the shortage is eliminated. d. lower price, which decreases quantity demanded and increases quantity supplied until the shortage is eliminated.