Because the liquidity-preference framework focuses on the
a. short run, it assumes the price level adjusts to bring the money market to equilibrium.
b. short run, it assumes the interest rate adjusts to bring the money market to equilibrium.
c. long run, it assumes the price level adjusts to bring the money market to equilibrium.
d. long run, it assumes the interest rate adjusts to bring the money market to equilibrium.
b
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A member of a corporate board of directors that does not have a direct management role in the firm is known as
A) a shareholder. B) a corporate governor. C) an inside director. D) an outside director.
You have a value-weighted index made up of two companies. One company, we will call A, has a stock price of $25 per share and there are 10,000 shares outstanding. The other company, we will call B, has a stock price of $100 per share and has 1000 shares outstanding. What will be the percentage change in the index from a 10% increase in the share price of company A? What will be the percentage change in the index from a 10% increase in the share price of company B?
What will be an ideal response?
The quantity equation states:
A. P × V = M × Y. B. M × Y = P × V C. M × P = Y × V. D. M × V = P × Y.
The collapse of the Thai currency, the baht, was partially due to:
A. information provided by the central bank of Thailand. B. information not provided by the central bank of Thailand. C. the European Central Bank. D. inaction by the Federal Reserve.