Liquidity refers to the
A. rapidity with which money flows through the economy.
B. ease with which an asset can be converted into cash.
C. ease with which banks move funds from checking to savings accounts.
D. All of these responses are correct.
Answer: B
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If the demand for hamburgers decreases, the equilibrium price
A) rises and the equilibrium quantity increases. B) falls and the equilibrium quantity increases. C) rises and the equilibrium quantity decreases. D) falls and the equilibrium quantity decreases.
What are the three main exchange rate systems, and how do they operate?
What will be an ideal response?
Agency problems appear in many settings within a firm. All of the following are examples, except which is NOT a good example of this problem?
a. Diversified stockholders are more enthusiastic on accepting business risks than are firm managers. b. Firm managers receive cash bonuses based on the performance of the firm. c. Employees sometime take items from the store in which they work. d. Lenders to firms want the managers to invest in safe projects to protect their collateral in the project but managers want to invest in projects that will make a name for them and warrant promotion. e. Firm managers sometime want to relax on the job.
A totally pollution free environment should be a primary social goal
a. True b. False Indicate whether the statement is true or false