When an asset is described as being highly liquid, which one of the following characteristics does it possess?
A. The asset holds its value over time.
B. It is easily and readily converted into money without any loss in purchasing power.
C. The face value of the asset is somewhat less than its value when converted into currency.
D. It earns a high rate of interest, so its purchasing power is maintained when prices rise.
Answer: B
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A situation is efficient if it is:
A. not possible to find a transaction that will make at least one person better off without harming others. B. possible to find a transaction that will make everyone better off. C. possible to find a transaction that will make at least one person better off, even if others are made worse off. D. possible to find a transaction that will make at least one person better off without harming others.
Vouchers given to consumers
A) increase the demand for a good. B) decrease the demand for a good. C) increase the supply of a good. D) decrease the supply of a good. E) increase both the demand for the good and the supply of the good.
Analyze the short-run and long-run effects of an unanticipated decrease in the money supply in the misperceptions model. Tell what happens to output, the price level, and the expected price level in both the short run and long run
What will be an ideal response?
The economic boom of the 1990s was caused in part by:
a. Jimmy Carters efficient administration. b. sub-prime lending. c. an investment boom as the use of personal computers and the Internet became ubiquitous. d. All of the above are correct. e. Only a and c are correct.