According to the household liquidity effect, higher stock prices lead to increased consumption expenditures because consumers
A) feel more secure about their financial position.
B) want to sell stocks and spend the proceeds before stock prices fall.
C) believe that their wages will increase due to increased profitability of firms.
D) can now afford more expensive imports.
A
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Suppose that 130 people are unemployed for part of a given year; 120 are unemployed for 1 month, and 10 are unemployed throughout the year. What percentage of total months of unemployment is attributable to the long-term unemployed?
A. 7.7 per cent B. 10 per cent C. 13 per cent D. 50 per cent
The minimum efficient scale is
A) the plant size that yields the most profit. B) the smallest output level where the firm finally reaches productive efficiency. C) the level of operation where long-run average costs are lowest. D) the level of output where diminishing returns have not set in yet.