The more liquid markets are the:
A. lower the interest rates, and the higher the amount of investment.
B. lower the interest rates, and the lower the amount of investment.
C. higher the interest rates, and the higher the amount of investment.
D. higher the interest rates, and the lower the amount of investment.
A. lower the interest rates, and the higher the amount of investment.
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The principal-agent problem that exists for bank trading activities can be reduced through
A) creation of internal controls that combine trading activities with bookkeeping. B) creation of internal controls that separate trading activities from bookkeeping. C) elimination of regulation of banking. D) elimination of internal controls.
There is a rise in labor productivity in the economy. As a result, in the short run Real GDP __________ and the price level __________
A) rises; falls B) falls; rises C) falls; falls D) rises; rises E) remains constant; remains constant
A shortage or a surplus can exist when the current price is equal to the equilibrium price
a. true b. false
Which describes an oligopoly?
a. one firm producing 95% of the output b. two to four firms producing 70% - 80% of the output c. eight to ten firms producing 60% - 70% of the output d. ten or more firms producing 90% of the output