In 1886, the price of a 6.5-ounce glass bottle of Coca Cola was priced at 5 cents. In the case of this size bottle of Coca Cola, the price could be considered
A) as remaining sticky in the short run but flexible in the long run.
B) as remaining sticky in both the short run and the long run.
C) as being flexible in the short run, but returning to price stickiness in the long run.
D) as being flexible in both the short run and the long run.
B
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"Purchasing power" of money:
a. Is the value of money measured in terms of how many goods and services it will buy. b. Is the value of a currency expressed in a foreign currency. c. By definition, falls over any given period of time. d. Is the value of money adjusted for price differences among countries. e. Correlates positively with the inflation rate.
The globalized AS/AD curve is the standard AS/AD model with an added:
A. long-run aggregate supply curve. B. world supply curve. C. world demand curve. D. domestic supply curve.
Explain how Federal Deposit Insurance (FDIC) could potentially create a moral hazard for the managers of deposit institutions.
What will be an ideal response?
When a financial asset is first sold, the sale takes place in the ________ market, and subsequent sales take place in the ________ market
A) secure; risk B) stock; bond C) investment; commercial D) primary; secondary