Margin calls are more likely to happen when markets are:
A. irrational.
B. crashing.
C. booming.
D. stable.
Answer: B
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Do you agree that currency depreciation will lead to an increase in the debt burden of the companies that borrow in foreign currency? Explain with an example
If supply decreases, the increase in price will be smaller if demand and supply are highly elastic.
Answer the following statement true (T) or false (F)
In terms of the stock market, systematic risk refers to the fact that
A) some stocks have higher returns than others. B) some stocks' returns have a higher variance than others. C) all stock prices are correlated with the health of the economy. D) most stock prices are perfectly negatively correlated.
Using two carefully-labeled diagrams, explain how MPL and APL can be derived from a firm's production function. In your answer, explain the relationship between average and marginal product.
What will be an ideal response?