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 82 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
Gracias!


cpetit11

  • Member
  • Posts: 321
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

Earwax has antimicrobial properties that reduce the viability of bacteria and fungus in the human ear.

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?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

For a complete list of videos, visit our video library