The problem with spinning is that it may ________ the cost of capital to a firm and thus ________ the efficiency of the capital market
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
B
You might also like to view...
Assume that the full-employment level of output is $1,000 and the price level associated with full-employment output is 100. Also assume that the economy's current level of output is $1,100 and, at the price level of 100, current aggregate demand is $1,200. If the government moves the economy back to the full-employment level of output by reducing government purchases by $50, then the expenditures multiplier equals
A. 4. B. 5. C. 2. D. 10.
The firm in the above figure has a markup of ________ per meal
A) $0 B) $4 C) $8 D) $10 E) more than $10
The fraction of each added dollar of income that is used for consumption is called the:
a. average propensity to consumer (APC). b. autonomous consumption rate (ACR). c. marginal consumption propensity (MCP). d. marginal propensity to consume (MPC).
Suppose the economy experiences an inflationary gap. Policymakers who believe that government is too big would favor which of the following policies to close the gap?
A) reduction in government spending B) increases in income tax rates C) increases in corporate tax rates D) increases in interest rates