Wage Contracts, Efficiency Wages, and the Minimum Wage Are Explanations

question 13

Multiple Choice

Wage contracts, efficiency wages, and the minimum wage are explanations for why

• A)competition results in price wars.
• B)wages tend to be inflexible downward.
• C)the aggregate demand curve slopes downward.
• D)there is little support for the existence of a real-balances effect.

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Definitions:

ECNs

Electronic communication networks that facilitate the buying and selling of securities outside traditional stock exchanges.

Transactions Costs

Expenses incurred when buying or selling securities, including broker commissions and spreads.

Traditional Markets

Markets that refer to established financial exchange venues and systems where stocks, bonds, and other securities are traded.

Initial Margin

This refers to the minimum amount of capital required to enter into a position in the securities or futures market, serving as a deposit to cover potential losses.