This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A key property of a Diamond-Dybvig bank is A) it is well-diversified. B) it lends to borrowers. ... (Read 16 times)

joe

  • Hero Member
  • *****
  • Posts: 627
on: Jun 30, 2018
A key property of a Diamond-Dybvig bank is
 
  A) it is well-diversified.
  B) it lends to borrowers.
  C) it provides benefits very different from the provision of insurance.
  D) it trades with other banks.

Question 2

A. W. Phillips' 1958 paper examined unemployment and wage growth. What role, if any, does wage growth play in the modern Phillips curve?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Expo

  • Sr. Member
  • ****
  • Posts: 351
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

The modern Phillips curve relates unemployment to inflation, rather than wages. This allows inclusion of expected inflation and price shocks as causes of inflation, in addition to the unemployment gap. But the central idea remains that changes in inflation are driven by wage changes. When wages are sticky, then unemployment gaps have a small impact on inflation, while flexible wages cause large changes in inflation.


joe

  • Hero Member
  • *****
  • Posts: 627
Reply #2 on: Jun 30, 2018
Thank you


Expo

  • Sr. Member
  • ****
  • Posts: 351
Reply #3 on: Jun 30, 2018
No problemo


« previous next »
 

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

Self-sealing property Self-sealing property
Diamond and Oxygen Diamond and Oxygen
Bank teller assisting with customer service. Bank teller assisting with customer service.
Distribution of the Property of Americans Distribution of the Property of Americans
Number and label designations for oxygen sensors. Bank 1 is the bank where cylinder number 1 is ... Number and label designations for oxygen sensors. Bank 1 is the bank where cylinder number 1 is ...
Rita borrows $4,500 from the bank at 9 percent annually compounded interest to be repaid in ... Rita borrows $4,500 from the bank at 9 percent annually compounded interest to be repaid in ...
Video: Hormonal regulation of pregnancy - weeks 2 through 38

For a complete list of videos, visit our video library