You decide to open a savings account, and you notice a sign in your bank that indicates deposits are FDIC insured. What protection does that give you?
(A) If the bank fails, your deposits are protected up to $250,000.
(B) If you accidentally injure someone, they cannot claim any of the first $250,000 of your bank deposits as compensation.
(C) Your deposits are guaranteed a certain rate of interest if you have at least $250,000 in the bank.
(D) If you accidentally withdraw more money that you have in your account, you will not have to pay a penalty.
Ans: (A) If the bank fails, your deposits are protected up to $250,000.
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Given the production function Y = A and fixed values for the saving rate and depreciation, if productivity is growing at an average rate of three percent, and the labor input grows at two percent, there is a unique growth rate of capital that is
sustainable. That is, if the growth rate of capital is either higher or lower than this steady-state value, then it must eventually change, even if nothing else in the economy changes. Calculate this steady-state growth rate of capital, and explain why it alone is a sustainable rate. [Hint: Use the fact that the growth rates of output and capital per worker are 43% higher than the growth rate of productivity.]
The demand for curve for money
a. shows the amount of money people actually hold b. shows the amount of money people would like to hold, given the constraints they face c. shifts if the interest rate changes d. is independent of the price level e. changes whenever the Fed changes the money supply.