The time and money spent in carrying out financial transactions are called
A) economies of scale.
B) financial intermediation.
C) liquidity services.
D) transaction costs.
D
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The preferred habitat theory of the term structure is closely related to the
A) expectations theory of the term structure. B) segmented markets theory of the term structure. C) liquidity premium theory of the term structure. D) the inverted yield curve theory of the term structure.
In the short-run macro model, if GDP is $5 trillion and aggregate expenditure is $4 trillion,
a. GDP will rise because inventories will rise b. GDP will fall because inventories will fall c. GDP will remain the same because this is an equilibrium d. investment will decrease e. the government will have to increase taxes
A union representative observed that if the union members' wages were increased by some proportion, the workers would eventually suffer a greater than proportional decline in employment. This statement could best be explained if:
A. The new wages are to take effect immediately B. Union labor can easily be replaced with capital C. Union labor is an insignificant portion of the total cost of production D. The demand for the final product the workers produce is relatively inelastic
For which of the following social questions is there a relatively clear, objectively correct answer?
A. For Whom to Produce? B. How to Produce? C. Why Produce? D. None of the above