According to the household liquidity effect, an expansionary monetary policy causes a ________ in the value of households' financial assets, causing consumer durable expenditure to ________

Fixed investment refers to investment in stocks, bonds, and improvements to land

a. True b. False Indicate whether the statement is true or false

In a market where all goods are perfect substitutes for each other,

a. the price elasticity of demand is 1.0 for all goods b. the market is perfectly competitive c. only one producer dominates d. only a few firms can operate e. brand loyalty is high