The degree to which an asset can be acquired or disposed of without much loss of nominal value or transaction costs is known as
A) fiducia. B) credit. C) fiat money. D) liquidity.
D
You might also like to view...
Suppose that the firms in an oligopolistic industry successfully collude. What will be the outcome? Explain
What will be an ideal response?
Suppose the currency price of the U.S. dollar in terms of the Japanese yen starts to fall. To prevent that from occurring, the U.S. central bank should
A) use U.S. dollars to buy Japanese goods. B) use yen reserves to buy U.S. dollars in the foreign exchange market. C) sell U.S. dollars in the foreign exchange market in exchange for yen. D) buy both U.S. dollars and yen in the foreign exchange market.
The income and substitution effects of a change in the wage rate
a. always work in the same direction b. always work in opposite directions c. work in opposite directions only if the change is a decrease d. work in the same direction only if the change is an increase e. work in the same direction only if the change is a decrease
Why does it make sense for unprofitable firms to stay in business?
What will be an ideal response?