If Prices Are Sticky

question 72

Multiple Choice

If prices are sticky

• A) economic activity will be coordinated efficiently.
• B) economic activity will not be coordinated efficiently.
• C) prices will quickly adjust to changes in demand.
• D) quantity supplied will always equal quantity demand.

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Definitions:

Capital Budgeting

The process of evaluating, comparing, and selecting the best projects to invest in to maximize a firm’s value, considering long-term investments.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity and operational efficiency of the business.

Straight-Line Depreciation

A system for distributing the expense of a material asset across its lifespan in equal yearly payments.

Working Capital

A financial metric representing the difference between a company's current assets and current liabilities, indicating the liquidity available to run its operations.