The economy’s self-correcting mechanism ensures that neither recessionary nor inflationary gaps will be eliminated eventually.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Suppose an investment bank buys $100 million worth of mortgage-backed securities. It finances the purchase by borrowing $90 million and using $10 million from its equity
If the value of holdings of mortgage-backed securities declines by 5%, what is its return on equity investment?
Laws that make it illegal to require union membership as a condition of continuing employment in a firm are
A) union shop laws. B) right-to-work laws. C) closed-shop laws. D) jurisdictional laws.
The demand for labor curve bends backward whenever the income and substitution effects work in opposite directions
a. True b. False
If a firm has significant market power, say, over 40 percent, the probability is high that
a. in the long run profits will be zero b. the industry is oligopolistic c. the market is highly competitive d. sales are quite high e. the industry wherein the firm operates has a low four-firm concentration ratio