Middlemen, such as grocers, stockbrokers, and realtors
a. specialize in reducing transactions costs.
b. provide nothing of value to either the buyer or the seller.
c. have no effect on economic output in society.
d. do not exist in capitalist economies.
A
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Refer to Exhibit 7-5. During year 3, Country Z experienced economic _____________ and _________________.
A) decline; deflation (falling price level) B) growth; inflation (rising price level) C) growth; deflation (falling price level) D) decline; inflation (rising price level)
By spreading her investments out over many different assets, an investor achieves
A) a higher expected return. B) increased risk. C) diversification. D) greater liquidity.
Which of the following will cause a movement along the aggregate demand curve?
a. A decrease in the price level b. An increase in government purchases c. A decrease in taxes d. An increase in investment spending e. An increase in the interest rate
Secondary reserves are
A. high-risk investments. B. government securities held by banks. C. assets a borrower pledges to a bank in case of default. D. interest-bearing debts.