When aggregate planned expenditure is less than GDP,
A) the economy definitely is at its equilibrium expenditure but even so, firms decrease production.
B) firms increase production until the economy reaches equilibrium expenditure.
C) the economy definitely is at its equilibrium expenditure and firms do not change production.
D) firms decrease production until the economy reaches equilibrium expenditure.
E) the economy might be at its equilibrium expenditure and if it is, firms do not change their production.
D
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Deposit insurance indirectly helped to create the savings and loan crisis in the United States because
A) depositors were not concerned with the types of investments made because they were insured, while at the same time savings and loans were aggressively investing in risky projects. B) depositors, believing that the government would not secure their deposits, were very concerned with the types of investments made at savings and loans. C) the government, without warning, eliminated deposit insurance for savings and loans, thereby causing a run on these institutions. D) depositors were not concerned with the types of investment made because savings and loans were making very conservative investments.
For diversification to be a successful management strategy, it must
A) generate accounting profits. B) earn normal profits. C) protect market share. D) add value.
The use of money allows trade to be roundabout
a. True b. False Indicate whether the statement is true or false
When interpreting the meaning of an exchange rate, the first step is to always:
a. know exactly what the exchange rate signifies in terms of which currency is the denominator. b. watch for ways the currency might lose value. c. learn about recent behavior of the exchange rate. d. know exactly what the rate is at any moment in time.