Which of the following describes the identity embodied in a balance sheet?
A. Net worth plus assets equal liabilities.
B. Assets plus liabilities equal net worth.
C. Assets equal liabilities plus net worth.
D. Assets plus reserves equal net worth.
C. Assets equal liabilities plus net worth.
You might also like to view...
If your income stays the same and the price level increases, you will buy fewer goods and services due to the
A) interest rate effect. B) real-balance effect. C) open economy effect. D) aggregate balances effect.
The concept of opportunity cost exists because
A) of scarcity. B) goods have different prices. C) of shortages. D) the value of services is hard to determine.
When OPEC raised the price of oil in 2000 (gasoline prices were $2 per gallon), it contributed to
a. demand-pull inflation b. cost-push inflation c. demand-push inflation d. cost-pull inflation e. cost-push deflation
The principal way in which an economy self-corrects from an inflationary gap is through
A. deflation, which increases purchasing power. B. inflation, which reduces purchasing power. C. disinflation, which maintains purchasing power. D. price level decreases, which stimulate production.