Consider two banks: Bank A and Bank B. Bank A has total assets worth 50,000 and total liabilities worth 24,000. Conversely, Bank B has total assets worth 100,000 and total liabilities worth 90,000.
Given this information, which of the two banks is more prone to bank runs and why?
Question 2
A decrease in the supply of labor will ________ real wages and ________ employment.
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease