Question
According to the Amihud and Mendelson (1986) model, all else being equal, if relatives spreads increase, this should: a. Increase prices b. Decrease prices c.
According to the Amihud and Mendelson (1986) model, all else being equal, if relatives spreads increase, this should:
a.
Increase prices
b.
Decrease prices
c.
Increase trading frequency
d.
Decrease liquidity.
e.
Other.
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Economics Principles and Policy
Authors: William J. Baumol, Alan S. Blinder
12th edition
978-0538453677, 538453672, 978-0538453622, 538453621, 978-0538453653
