Which of the following terms refers to provisions in a law or a contract whereby monetary payments are automatically adjusted whenever a specified price index changes?
A. Contango
B. Swap
C. Averaging
D. Indexing
Answer: D
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Which of the following would cause the equilibrium price of ketchup to increase and the equilibrium quantity of ketchup to decrease?
A) an increase in the price of mustard, a substitute for ketchup B) a decrease in the price of tomatoes C) an increase in the price of tomatoes D) an increase in the price of french fries, a complement for ketchup
If inventory investment during a year was minus $6 billion, producers must have
a. produced only $6 billion of new capital assets during the year. b. sold $6 billion more goods and services during the year than they produced. c. added goods valued at $6 billion to their stock of unsold goods and raw materials. d. produced new capital assets that exceeded the depreciation allowance by $6 billion.
Suppose a 10% increase in the price of aspirin leads to a 5% decrease in the quantity demanded of aspirin. The demand for aspirin, therefore, is
A. inelastic. B. perfectly inelastic. C. unit elastic. D. elastic.
When the consumption function becomes steeper,
What will be an ideal response?