Investment banks are vulnerable because
A) the maturity of their liabilities is less than the maturity of their assets.
B) the maturity of their assets is less than the maturity of their liabilities.
C) they tend to be underleveraged.
D) they tend to primarily hold short-term assets.
A
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If a nation imposes a tariff on imports, the portion of the tax paid by citizens depends upon
a. elasticity of demand. b. elasticity of supply. c. how important the good is. d. income elasticity. e. cross elasticity of demand with domestic products.
A person's portfolio of investments is the package of all the stocks, bonds, and other assets the person owns
a. True b. False Indicate whether the statement is true or false
When household debt as a share of income is abnormally high,
a. rapid growth of consumption is likely to lead the recovery. b. the growth prospects of the economy will be excellent because high household debt is the key to a strong economy. c. the growth of consumption is likely to remain sluggish even as the economy begins to recover. d. consumers will be in a strong position to deal with irregular expenses.
If a firm experiences gains from specialization as it increases its scale of production, we would expect its long-run average cost curve to be:
A) upward-sloping. B) horizontal. C) downward-sloping. D) vertical. E) U-shaped.