What is the "underwriting spread?"
A) the average percentage of the total bond issue handled by a member of an underwriting syndicate
B) the difference between the price the underwriters receive and the price they pay the borrower
C) the length of time the underwriter agrees to withhold the bonds from the primary market
D) the number of financial institutions in the underwriting syndicate
B
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In the short-run, a firm's decision to shut-down should not take into consideration
a. Avoidable costs b. Variable costs c. Fixed costs d. Marginal costs
The breakdown of the Bretton Woods system occurred because
a. the world economy was basically unhealthy b. the collapse of world gold production undermined the operation of the system c. the dollar was undervalued d. the dollar was overvalued e. the ten richest countries in the world refused to cooperate any longer
In an effort to reduce the surplus of dairy products, agricultural legislation paid dairy farmers to slaughter their herds and sell them to packinghouses (meat producers) in 1996-1997 . How did this influence the market for beef?
a. demand increased, leading to higher beef prices b. demand decreased, leading to lower beef prices c. supply increased, leading to lower beef prices d. supply decreased, leading to higher beef prices
Answer the following questions:
a. In 2004, four major hurricanes hit Florida. Explain how this destruction of property, and the rebuilding that went on afterward, affected GDP. b. Explain how GDP has trouble accounting for other parts of the economy as well.