1- Banks are always facing illiquidity. able to borrow from other banks. facing insolvency. profitable. ----------...
1- Banks are always
facing illiquidity.
able to borrow from other banks.
facing insolvency.
profitable.
----------
2- In the income-expenditure model, macro equilibrium occurs where:
The aggregate price level equals 100.
Aggregate Demand equals Total Planned Expenditure.
Total Planned Expenditure equals GDP.
Aggregate Supply equals GDP.
3- Use statements 1 and 2 to choose the correct answer.
- Inflation represents a decrease in the value of money.
- Personal spending on higher education is one component of the CPI.
Both 1 and 2 are true.
1 is true and 2 is false.
1 is false and 2 is true.
Both 1 and 2 are false.
Homework Answers
1. Banks are always able to borrow from other banks. Hence,option(B) is correct.
2. In the income-expenditure model, macro equilibrium occurs where total planned expenditure GDP. Hence,option(C) is correct.
3. Inflation represents a decrease in the value of money , Personal spending on higher education is one component of the CPI, these both statements are TRUE. Hence,option(A) is correct.
Add Answer to:
1- Banks are always
facing illiquidity.
able to borrow from other banks.
facing insolvency.
profitable.
----------...
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