Combining commercial banking and investment banking in the same organization produces a risk for that organization
A) that must be above that of investment banking.
B) that is the same as investment banking, the riskier of the two activities.
C) somewhere in between the risk of the two activities.
D) that may be below that of commercial banking.
D
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Consider a regression with two variables, in which X1i is the variable of interest and X2i is the control variable. Conditional mean independence requires
A) E(ui|X1i, X2i) = E(ui|X2i) B) E(ui|X1i, X2i) = E(ui|X1i) C) E(ui|X1i) = E(ui|X2i) D) E(ui) = E(ui|X2i)
Keynesian macroeconomists believe that the time it takes for falling wages and prices to eliminate a recessionary gap is __________ enough to say that the economy is __________
A) long; not self-regulating B) long; self-regulating C) short; not self-regulating D) short; self-regulating