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Without deposit insurance, increase(s) the likelihood of banking panics since O high interest rates; make risky loans inflation; currency becomes less valuable O low interest
Without deposit insurance, increase(s) the likelihood of banking panics since O high interest rates; make risky loans inflation; currency becomes less valuable O low interest rates; since everyone rushes to ask for a loan fractional reserve banking; banks don't hold all of the deposits as reserves.Suppose that the price that a firm sells its output falls and the firm thus finds itself in a situation in which the after-tax value of marginal product of capital is less than the user cost. How should it change capital to restore optimality and how does it restore optimality? O it should raise the amount of capital it owns in order to raise the marginal product of capital. it should reduce the amount of capital it owns in order to raise the marginal product of capital. O it should reduce the amount of capital it owns in order to reduce the user cost. O it should raise the amount of capital it owns in order to raise the user cost.If the money supply grows by 5 percent per year, velocity grows by 1 percent per year, and real GDP grows by 3 percent per year, then the rate of inflation is approximately percent per year. 0 3 0 5 0 1 0 7
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