While deposit insurance was designed to make the banking industry more stable, it contributed to the banking crisis of the 1980s because:
a. the FDIC only insured commercial banks
b. the ceiling on insured deposits was too low.
c. too many banks were insufficiently insured.
d. depositors became too complacent about the risks that the banks were taking.
e. unsafe banks were "kicked out" of the deposit insurance system.
d
Economics
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What must be true for a producer to obtain a producer surplus from the sale of a unit of a good?
What will be an ideal response?
Economics
Despite an expansionary monetary policy, an economy experiences a recession. Everything else held constant, the recession could occur in spite of the rightward shift of the LM curve if
A) consumer confidence decreases sharply. B) there is an investment boom. C) the money supply increases. D) taxes are cut.
Economics