For a corporation, issuing bonds is riskier than issuing stock.
Answer the following statement true (T) or false (F)
True
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Using the general concept of elasticity, would you expect the elasticity of demand for advertising to be positive or negative? Explain.
What will be an ideal response?
In terms of cash flows, a "balloon" mortgage resembles
A) an amortized loan. B) a Treasury bill. C) a conventional bond. D) a zero-coupon bond.
When examining the financial status of households, wealth is
A) synonymous with income. B) a flow variable whereas income is a stock variable. C) a stock variable and includes both tangible assets and human capital. D) not as important as income because wealth does not change over time.
The United States functions as a "safety valve" for the Mexican economy
A) when the U.S. government bails Mexico out of financial crisis. B) when the U.S. market buys products from the maquiladora industry. C) when Mexican workers who can't find jobs in Mexico migrate to the United States and send part of their income back to Mexico. D) when U.S. firms engage in direct foreign investment in Mexico.