The Bank of Techland Is the Largest Bank in Techland

question 74

Multiple Choice

The Bank of Techland is the largest bank in Techland.Which of the following is likely to be true if this bank fails?

• A) Techland's output will fall.
• B) Real interest rates in Techland will fall.
• C) Labor supply in Techland will fall.
• D) Real wages in Techland will remain unchanged.

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Definitions:

Shale Gas

Natural gas trapped within a relatively nonpermeable shale body, extracted by hydraulic fracturing.

Fine-grained

Describing materials or minerals that have small, compact particles or crystals, often used in the context of rocks or sediment.

Low Permeability

Characteristic of materials or rock formations that allow very little fluid to pass through due to small or poorly connected pores.

Salt Dome

A structure formed when buried salt buoyantly flows to the surface in steep, pipelike conduits.