Liquidity is:
A. a measure of how easily a particular asset can be converted quickly to cash without much loss of value.
B. the speed with which dollars are spent in the economy.
C. the speed with which physical dollars change hands in the economy.
D. the magnitude of change in the money supply as controlled by the Fed.
A. a measure of how easily a particular asset can be converted quickly to cash without much loss of value.
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Define and give an example of how a spell of frictional unemployment can begin
What will be an ideal response?
For a demand schedule, which of the following is held constant?
A) relative prices B) quantity demanded C) quality of the good D) nominal prices
The total fixed cost curve:
a. varies with the quantity of inputs used. b. decreases with output. c. increases with output. d. remains constant regardless of output.