Deleveraging is the process of reducing leverage, and therefore increasing the risk to capital from any further declines in asset prices
a. True
b. False.
B
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Refer to Figure 4-3. If the market price is $3.00, what is the consumer surplus on the second ice cream cone?
A) $0 B) $0.50 C) $3.00 D) $5.50
Oligopoly occurs when
a. a few firms sell many different products. b. a few firms sell to a few large buyers. c. many firms dominate a single market. d. a few firms dominate a single market.
The more elastic a monopolistic competitor's long-run demand curve, the:
A. greater its excess capacity. B. higher its price relative to that of a pure competitor having the same cost curves. C. lower its long-run profit. D. lower its average total cost at its profit-maximizing level of output.
Suppose the velocity of money is not fixed, but stable at about two percent growth per year. How could the quantity theory of money be modified to include a stable growth rate of the velocity of money? In this modified quantity theory of money with
velocity growing at two percent per year, what would the growth rate of the other variables in the theory need to be to cause inflation? What will be an ideal response?