If equilibrium in the economy is merely a function of aggregate demand, the aggregate supply curve must be:
a. upward-sloping.
b. downward-sloping.
c. in the Keynesian region.
d. vertical.
e. at the full-capacity level.
c
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Tools to help solve the adverse selection problem in financial markets include all of the following EXCEPT
A) diversification. B) government regulations to increase information. C) the use of financial intermediaries. D) the private production and sale of information.
When an asset is described as being highly liquid, which one of the following characteristics does it possess?
A. The asset holds its value over time. B. It is easily and readily converted into money without any loss in purchasing power. C. The face value of the asset is somewhat less than its value when converted into currency. D. It earns a high rate of interest, so its purchasing power is maintained when prices rise.
Answer the following questions true (T) or false (F)
1. To increase gas mileage, automobile manufacturers make cars small and light. Large cars absorb more of the impact of an accident than small cars but yield lower gas mileage. These facts suggest that a negative relationship exists between safety and gas mileage. 2. An increase in the unemployment rate may be represented as a movement from a point on the production possibilities frontier to a different point on the frontier. 3. If a country is producing efficiently and is on the production possibilities frontier, the country can produce more of one good without producing less of the other good.
With ________ finance, borrowers obtain funds from lenders by selling them securities in the financial markets
A) active B) determined C) indirect D) direct