This topic contains a solution. Click here to go to the answer

Author Question: Assume that a firm has 100 million in real assets and 90 in real liabilities. If the price level ... (Read 79 times)

SAVANNAHHOOPER23

  • Hero Member
  • *****
  • Posts: 542
Assume that a firm has 100 million in real assets and 90 in real liabilities. If the price level falls by ten percent, the real value of liabilities would ________.
 
  A) fall to 81 million
  B) change, but more information must be provided to determine the exact movement
  C) remain unchanged
  D) rise to 99 million

Question 2

In the absence of a financial system, the two-period model without taxes predicts that
 
  A) consumption is more volatile that output.
  B) consumption is as volatile as output.
  C) consumption is less volatile than output.
  D) We do not know.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

medine

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

D

Answer to Question 2

B




SAVANNAHHOOPER23

  • Member
  • Posts: 542
Reply 2 on: Jun 30, 2018
Wow, this really help


atrochim

  • Member
  • Posts: 331
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

For a complete list of videos, visit our video library