A theory is an explanation of the causal mechanism behind observed phenomena.

Answer the following statement true (T) or false (F)


True

Economics

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Firms do not change prices frequently because:

A. it is costly to do so. B. customers will refuse to patronize firms that change prices frequently. C. it is easier to change the quantity of capital used in production. D. there are legal prohibitions against doing so.

Economics

Suppose, at a given federal funds rate, there is an excess demand for reserves in the federal funds market

If the Fed wants the federal funds rate to stay at that level, then it should undertake an open market ________ of bonds, everything else held constant. If the Fed does nothing, however, the federal funds rate will ________. A) sale; increase B) purchase; increase C) sale; decrease D) purchase; decrease

Economics

Part of the effect of higher interest rates on residential construction is through

A) inflationary expectations. B) credit rationing. C) the expected value of the homes to the buyers. D) the income effect.

Economics

Which type of audit features the task of interviewing employees?

a. financial statement audit b. salary audit c. operational audit d. compliance audit e. integrated audit

Economics