In 2008, when the net worth of Trust Bank became negative, depositors made a beeline to withdraw their deposits. They feared they might lose all of their deposits if they did not withdraw them. Such a situation is known as:
a. a liquidity trap.
b. a bank run

The phrase "demand has increased" means that

A) a demand curve has shifted to the right. B) there has been a downward movement along a demand curve. C) a demand curve has shifted to the left. D) there has been an upward movement along a demand curve.

In the Cobb-Douglas production function Y = AK3/4L1/4,

A) capital is a more expensive input than labor. B) capital is more plentiful than labor. C) diminishing returns to capital are three times greater than are diminishing returns to labor. D) capital has a larger share in national income than does labor.