In general, a firm will be unlikely to invest as long as the
A. firm cannot sell bonds directly to the public and instead must borrow from a bank.
B. profits realized from the investment are insufficient to cover the interest payments.
C. interest rate is greater than the inflation rate.
D. firm has to borrow any money to make the investment.
Answer: B
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Empirical studies conclude that advertising
A) raises prices in all markets. B) can reduce the prices of many goods. C) reduces the prices on all goods. D) has no impact on prices.
If Firm A and Firm B are playing a finitely repeated game in which they both believe there is a 90 percent chance that the game will continue each period, all of the following are true except which one?
A) There is not an end-game problem. B) Both firms can earn higher profit by cooperating. C) Both managers will worry about punishment from cheating. D) Tacit collusion is not possible.
A decrease in quantity demanded
a. illustrated by a movement downward and to the right along a demand curve. b. illustrated by a movement upward and to the left along a demand curve. c. shifts the demand curve to the left d. shifts the demand curve to the right.
Why would a usury law result in banks making less credit available to low-income households?
What will be an ideal response?