Historically, the most harmful bubbles are those financed by heavy borrowing and extensive use of leverage.
Answer the following statement true (T) or false (F)
True
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If the nominal interest rate is held constant, a higher inflation rate tends to
A) reduce the real interest rate. B) increase the real interest rate. C) leave the real interest rate unchanged. D) have no effect on the savings decisions of households.
NIPA means
A) New Income and Price Accounting. B) National Investment and Productivity Approach. C) Neutral Increase of Production Allocation. D) National Income and Product Accounts.
If a dollar currently purchases 12.5 pesos and someone forecasts that in a year it will purchase 14 pesos, then the forecast is given in
a. real terms and implies the dollar will appreciate. b. real terms and implies the dollar will depreciate. c. nominal terms and implies the dollar will appreciate. d. nominal terms and implies the dollar will depreciate.
Since a monopoly faces no competitors, it need not advertise
Indicate whether the statement is true or false