When financial markets are __________, leverage ______________; when they are _______, leverage ____________.
A. booming; multiplies the gains; crashing; magnifies the losses
B. booming; magnifies the losses; crashing; multiplies the gains
C. crashing; mitigates the losses; booming; mitigates the gains
D. crashing; magnifies the losses; booming; mitigates the gains
A. booming; multiplies the gains; crashing; magnifies the losses
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The marginal cost to a student of missing a class meeting in Introductory Economics increases when
A) textbook prices increase. B) tuition rates increase. C) valuable information is communicated in the class meetings. D) any of the above occurs.
A model that is composed of many equations that show the channels through which monetary and fiscal policy affect aggregate output and spending is called a
A) reduced-form model. B) median-voter model. C) informed median-voter model. D) structural model.
RBC theory leads to ________ government macro-stabilization policy, due to the theory's assumption of ________
A) a rationale for, slow wage and price adjustment B) a rationale for, continuous market-clearing C) a rejection of, slow wage and price adjustment D) a rejection of, continuous market-clearing
What is the advantage of the government imposing an ad valorem tax over a specific tax when facing a monopoly?
What will be an ideal response?