Long-term contracts are generally preferable to:
A. short-term contracts.
B. vertical integration.
C. spot markets.
D. None of the statements is correct.
Answer: D
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"As interest rates rise, people save more money." A graph displaying this relationship would show
A) an inverse relationship. B) a positive relationship. C) a cross-section graph. D) a positive then a negative relationship.
The expenditure multiplier explains how a change in
A. real GDP leads to a change in induced expenditure. B. induced expenditure leads to a change in real GDP. C. real GDP leads to a change in autonomous expenditure. D. autonomous expenditure leads to a change in real GDP. E. induced expenditure leads to a change in autonomous expenditure.
The nutritional information now available at many fast food restaurants is an example of:
A. government requiring the restaurants to signal whether food is healthy or not. B. government regulation to screen out unhealthy food for consumers. C. requiring the more informed party to reveal the missing information. D. a failed attempt by government to reduce information asymmetry.
If M2 were 2,000, small denomination time deposits were 200, and large denomination time deposits were 400, how much would M3 be?
Fill in the blank(s) with the appropriate word(s).