Refer to Figure 23-1. If the economy is at point L, what will happen?
A) Inventories have risen above their desired level, and firms decrease production.
B) Inventories have risen above their desired level, and firms increase production.
C) Inventories have fallen below their desired level, and firms increase production.
D) Inventories have fallen below their desired level, and firms decrease production.
A
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A bank has total assets of $2,000,000 and capital of $150,000. The bank's leverage ratio is
A) 20%. B) 15%. C) 7.5%. D) None of the above.
If an economy is at potential GDP and an expansionary policy is correctly anticipated, the result will be: a. a short-run fall in output and employment
b. little or no increase in GDP. c. an increase in wages along with a dramatic fall in the price level. d. a rapidly expanding economy. e. a severe recession.