The structure of an organization is influenced by transactions costs

Indicate whether the statement is true or false


True

Economics

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Since all assets typically do not move together, how can investors typically reduce risk?

A) Purchase only the best performing assets. B) Diversify one's portfolio across different asset classes. C) Avoid poor performing assets. D) Actively manage one's portfolio.

Economics

Which of the following is most likely to occur during recession?

a. Increase in wage rate b. Decrease in potential real GDP c. Increase in the market rate of interest d. Decrease in the average price level e. Decrease in the government transfer payments

Economics

Opportunity cost is the value of the next best alternative to a given choice

a. True b. False Indicate whether the statement is true or false

Economics

Suppose the Fed forecasts a reduction in cash leakages. It might offset the effect of this on the money supply by

A) buying government securities. B) selling government securities. C) lowering the required reserve ratio. D) lowering the discount rate.

Economics