An asset is liquid if it
A) is of intrinsic value.
B) can be exchanged for other goods and services.
C) is a store of value.
D) can be obtained or disposed of without losing much of its nominal value.
D
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The Phillips curve shows the relationship between
A) aggregate supply and the unemployment rate. B) the inflation rate and the unemployment rate. C) the rate of growth in real GDP and the unemployment rate. D) aggregate demand and the unemployment rate.
Keynesians believe that the difference between using an increase in the money supply compared with an increase in government spending to increase aggregate demand in the event of a recession is that if government spending is increased, ________ will
be ________ than if the money supply is increased. A) real interest rate; higher B) real interest rate; lower C) the price level; lower D) the price level; higher
Assuming pure competition, which of the following are equivalents?
A. MRP L /P L = MRP C /P C and P x = 1/MC. B. MRP L /P L = MRP C /P C and P x = AVC. C. P x = MC and MRP L /P L = MRP C /P C = 1. D. P x = MC and MP L /P L = MP C /P C
An increase in the demand for dollars on the foreign exchange market, all else equal, will result in:
A) appreciation of the U.S. dollar and depreciation of the foreign currency. B) appreciation of the U.S. dollar and appreciation of the foreign currency. C) depreciation of the U.S. dollar and depreciation of the foreign currency. D) depreciation of the U.S. dollar and appreciation of the foreign currency.