Identify the correct definition of liquidity
a. The availability of credit in the form of money is known as liquidity.
b. The ability of money to be a store of value is known as liquidity.
c. The difference between real and nominal money values is known as liquidity.
d. The ability of an asset to be easily converted into money is known as liquidity.
e. The ability of an asset to be universally accepted as a means of exchange is known as liquidity.
d
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The figure above shows the demand for and supply of rental housing in Smallton. If a rent ceiling is set at $800, what is the rent?
A) $800 B) $600 C) $400 D) None of the above answers is correct.
Which of the following products has an elastic demand?
A. water B. coffee C. cars D. salt
When the Federal Reserve wants to slow inflation, it
A) lowers the federal funds rate. B) increases taxes on interest income. C) raises the federal funds rate target. D) increases aggregate income, output, and employment. E) cuts the federal funds rate target aggressively to almost zero.
Which of the following events will help to burst an asset price bubble?
A) Speculative demand for the asset quickly declines. B) Speculative demand for the asset quickly increases. C) New information leads buyers to doubt that prices will continue to increase in the future. D) A and C are correct