The effects of asset price inflation and asset price deflation generally:
A. even out.
B. are addressed by policymakers.
C. have unequal effects on the economy.
D. are unrelated.
Answer: C
You might also like to view...
The term used to describe a more realistic conception of human problem-solving that assumes less than perfect analysis is: a. framing
b. compartmentalizing. c. countercyclical policy. d. bounded rationality.
Figure 8.7 shows a successful price-fixing arrangement (cartel) between two identical firms. If the cartel collapses and the two firms compete against each other, each firm's profit will be ________ and the quantity will be ________.
A. smaller; smaller B. smaller; greater C. greater; smaller D. greater; greater
Which of the following would NOT be an asset on a bank's balance sheet?
A) loans outstanding B) bank building C) cash in the vault D) transactions deposits
The Justice Department and the Federal Trade Commission are likely to oppose mergers
a. that seem likely to increase efficiency. b. that create a larger firm with economies of scale in a contestable market. c. which will help one of the merging firms out of financial difficulties. d. which threaten to reduce competition.