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 68 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?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Diamond and Graphite Diamond and Graphite
During the Pullman strike in Chicago, workers protesting wage cuts did $340,000 in property damage, During the Pullman strike in Chicago, workers protesting wage cuts did $340,000 in property damage,
Bank teller assisting with customer service. Bank teller assisting with customer service.
Example of Reconciling a Bank Statement Example of Reconciling a Bank Statement
How to solve a linear algebraic bank interest problem with two unknowns How to solve a linear algebraic bank interest problem with two unknowns
Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s
Video: The primary factors that affect circulation - MABP, CO and SVR

For a complete list of videos, visit our video library