The Fed acts as lender of last resort:
A. when deposit insurance isn't enough or when an institution isn't covered by deposit insurance.
B. only when an institution is not covered by deposit insurance but deposit insurance would have been enough.
C. for any institution, household, or business, that faces a solvency crisis.
D. only when an institution is covered by deposit insurance but deposit insurance isn't enough.
Ans: A. when deposit insurance isn't enough or when an institution isn't covered by deposit insurance.
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If the price of a good changes but everything else influencing suppliers' planned sales remains constant, there is a
A) new supply curve that is to the right of the initial supply curve. B) new supply curve that is to the left of the initial supply curve. C) movement along the supply curve. D) rotation of the initial supply curve around the initial price.
Which of the following statements is true about a consumer's optimal decision when indifference curves are concave?
A) Both goods are consumed. B) No goods are consumed. C) Only one of the goods is consumed. D) It occurs at the point of tangency with the budget line.