The GAP ratio is a measure of __________ risk
A) credit
B) leverage
C) interest rate
D) liquidity
C
You might also like to view...
Positive net exports are treated like domestic investment in the national income accounts because they are
A) always part of inventories. B) fixed assets not intended for resale. C) they represent future flows of real income. D) not intended for resale.
The socially efficient level of output is determined where:
a. marginal social cost equals marginal social benefit. b. marginal private cost equals marginal social benefit. c. average social cost equals average social benefit. d. average private cost equals average social benefit.
Which of the following solutions would a Keynesian economist suggest to avoid turning the recession of the late 20s into the depression of the 30s?
A. balance the federal budget B. decrease the available of unemployment compensation C. decrease the interest rate D. decrease government spending
The open economy effect and interest rate effect are two of the reasons why
A. capital formation does not contribute to economic growth in poor countries. B. higher price levels increase long-run aggregate supply. C. growth of the labor force does not contribute to economic growth in wealthy countries. D. the aggregate demand curve slopes downward.