In the early 1980s, rising interest rates caused a tremendous __________ in the value of savings-and-loan __________
A) inflow; liabilities
B) inflow; assets
C) outflow; liabilities
D) outflow; assets
D
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If the Fed wants to lower the money supply
A) it should lower the discount rate. B) it should buy bonds. C) it should lower the reserve requirement. D) it should sell bonds.
If the marginal cost for the state of Montana to increase the speed limit on its interstate highways to 100 mph is estimated to be $500 per day, then Montana should increase the speed limit to 100 mph
A) only if the marginal benefit received each day is less than $500. B) as long as the marginal benefit received each day is just equal to or greater than $500. C) as long as the daily marginal cost is lower than it had been before the speed limit increase. D) unless the marginal benefit received falls to zero.