Asset transformation can be described as
A) borrowing long and lending short.
B) borrowing short and lending long.
C) borrowing and lending only for the short term.
D) borrowing and lending for the long term.
B
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Refer to Figure 11.2. Suppose that Ca = 40, MPC = 0.8, I = 10. What is the value of consumption in equilibrium?
A) 32 B) 80 C) 240 D) 320
Empirical evidence reveals a(n) __________ relationship between money and stock prices
A) positive and consistent B) negative and consistent C) completely independent D) inconsistent
In a dynamic economy under ideal conditions, the unemployment rate
A) increases as the price level rises. B) is greater than zero percent due to natural unemployment. C) should be zero. D) averages 6 percent. E) decreases as the price level falls.
The saying that "There's no such thing as a free lunch" refers to the:
A. marginal principle. B. spillover principle. C. principle of opportunity cost. D. reality principle.