Which of the following is true?
a. The stock market provides investors with an opportunity to own a fractional share of the firm's future profits.
b. A new stock issue is often an excellent way for a firm to raise funds for future expansion.
c. Changes in stock prices provide information about what investors think of various business decisions.
d. All of the above are true.
D
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In the figure below, spending $1 million on advertising increases the demand from D0 to D1. What is the marginal benefit of the advertising?
A) $90 million
B) $1 million
C) $80 million
D) None of the above answers are correct.
At the rate of output where a monopolist's marginal revenue equals zero, what is the price elasticity of demand for the monopolist's product or service?
a. Zero b. Unitary c. Infinity d. Indefinite
Refer to the accompanying figure. Suppose all the sellers in this market started out charging a price of $45 per unit. What is the most likely result?
A. They would lower their prices because at $45 there would be excess demand. B. They would all make a large profit because $45 is more than the equilibrium price. C. They would lower their prices because at $45 there would be excess supply. D. They would all just break even because $45 is their reservation price.
The money supply (M1) includes currency held by the public plus
A. Balances in most savings accounts and money market mutual funds. B. Transactions accounts plus money market mutual funds. C. Currency held by the Fed and Treasury and transactions accounts. D. Transactions accounts plus travelers checks.