A company borrows money to supplement its current funds and uses it to buy more financial assets. This is what referred to as:
A. leverage.
B. herding.
C. diversification.
D. quantitative easing.
Answer: A
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When Fresh Express Salads decides to mechanically pick all of its lettuce, it directly answers the ________ question
A) what B) how C) for whom D) where E) when
The crowding-out effect implies that a
a. budget surplus will be highly effective against inflation. b. budget deficit is likely to stimulate aggregate demand and cause inflation. c. budget deficit will increase real interest rates and, thereby, retard private spending. d. budget surplus will retard aggregate demand and throw the economy into a downward spiral.
Suppose that an individual has chosen not to work. Then a change in the wage rate:
A. creates a substitution effect, but no income effect. B. creates an income effect, but no substitution effect. C. creates both and income and substitution effect. D. creates neither an income effect nor a substitution effect.
A shortage of product means a(n):
A. excess supply of the product. B. excess demand of the product. C. situation where the quantity demanded is less than the quantity supplied. D. situation where the current market price is too high.