Suppose a firm wanted to go out of business. The firm sells all its assets and pays off everything it owes to creditors. The stockholders would receive
A) nothing.
B) their annual dividend payment.
C) one half of the funds; the other half of the funds goes to bondholders.
D) the rest of the funds, after everyone who has a claim against the firm is paid.
D
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As a household's disposable income increases, its autonomous expenditures ________ and its induced expenditures ________
A) increase; do not change B) decrease; do not change C) increase; increase by a smaller amount than the increase in income D) do not change; increase by an amount equal to the increase in income E) do not change; increase by a smaller amount than the increase in income
If wages and prices are flexible, then an anticipated change in the money supply will cause wages and prices to __________ the actual inflation rate
A) increase at the same rate as B) increase at a higher rate than C) increase at a slower rate than D) cannot be exactly predicted
If demand is perfectly elastic, the price elasticity of demand is equal to:
A. 1. B. 0. C. infinity. D. a positive number between 0 and infinity.
Explain the view called real business cycle theory.
What will be an ideal response?