When RBC economists compare the volatility in their models to the data, what are they looking at?
A) The degree to which variables lead output over the business cycle
B) The strength of procyclicality of different variables
C) The amount of random variation in economic variables
D) The degree to which different economic variables move together
C
Economics
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An early sign that financial innovation might be leading toward a financial crisis is ________
A) deleveraging B) a bank panic C) a credit boom D) debt deflation
Economics
Banks deposit funds at the central bank, because:
a. They need them there in order be able to purchase government securities. b. They can be counted as required reserves. c. Both of the above are true. d. Actually, banks do not deposit funds at the central bank. They deposit them at the Treasury.
Economics