If your assets are highly liquid, this means you can make transactions on short notice
Indicate whether the statement is true or false
TRUE
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Refer to the Article Summary. What happens to the profit a car company makes on each car sold if it offers incentives such as discounts, cash rebates, or lease incentives to customers? How might a car company decide which of these strategies to use
What will be an ideal response?
If the Environmental Protection Agency (EPA) directs an old lace factory to install an expensive water purification system to treat its wastes before they are discharged into the river,
a. the price of lace will fall b. the lace factory may go out of business c. this directive is unenforceable d. the private cost curve will shift to the right e. more lace is sold so the factory can cover the higher costs
If someone suddenly developed a new technology that caused energy prices to drop significantly, it would most likely cause a ______.
a. negative supply shock b. positive supply shock c. period of high inflation d. period of high unemployment
In the business cycle, what immediately precedes the time when real GDP is falling?
A) depression B) peak C) recession D) expansion E) trough