Forward contracts are often illiquid because
A) any capital gains on them are heavily taxed, making investors reluctant to sell them.
B) government regulation has not provided for a secondary market in them.
C) they generally contain terms specific to the particular buyer and seller.
D) the brokerage fees involved in buying and selling them are very high.
C
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The money multiplier is equal to
A) the government spending multiplier. B) 1/(reserve ratio). C) the marginal propensity to consume. D) the reserve ratio.
An increase in the price of a substitute shifts the demand curve to the _______
a. right b. left c. it does not change the demand curve d. none of the above
Monopolistically competitive markets feature high barriers to entry
a. True b. False Indicate whether the statement is true or false
The perfectly competitive firm's total revenue curve
A. has a constant slope. B. has a positive slope. C. is linear and upward sloping. D. all of these.