Alan Blinder's Survey of Firms Found That the Theory of Price

question 123

Multiple Choice

Alan Blinder's survey of firms found that the theory of price stickiness accepted by the most firms was:

• A) menu costs.
• B) coordination failure.
• C) nominal contracts.
• D) procyclical elasticity.

---

Definitions:

Issued Bonds Payable

Long-term liabilities representing borrowed funds that a company must repay to bondholders.

Paid Note Payable

The satisfaction or settlement of a debt instrument or promissory note through payment by the debtor to the lender according to the agreed terms.

Common Stock

Equity ownership in a corporation, with voting rights and the potential to receive dividends.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock on the open market.