When investors become irrationally optimistic that an asset's price will continue to rise, it causes a financial bubble to:
A. become doubted by most serious investors.
B. start to inflate.
C. be on the verge of bursting.
D. burst.
Answer: B
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Assume that the full-employment level of output is $1,000 and the price level associated with full-employment output is 100. Also assume that the economy's current level of output is $1,100 and, at the price level of 100, current aggregate demand is $1,200. If the government moves the economy back to the full-employment level of output by reducing government purchases by $50, then the expenditures multiplier equals
A. 4. B. 5. C. 2. D. 10.
Financial firms whose loans are often $100 or less operate in ________
A) the microcredit market B) the hedge fund industry C) the macrofinance market D) the credit union sector
If each player has a dominant strategy, then those strategies make up the Nash equilibrium
What will be an ideal response?
A firm's demand curve for labor is equal to the
A) total revenue product. B) marginal revenue product. C) marginal factor cost. D) marginal wage.