Leverage refers to:
a. an IPO
b. Secondary offering
c. the ratio of debt to equity
d. The derivatives market
e. All of the above
C
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Mutual interdependence means that each firm in an oligopoly
A. depends on the other firms for its markets. B. considers the reactions of its rivals when it determines its pricing policy. C. faces a perfectly inelastic demand for its product. D. depends on the other firms for its inputs.
If an economy's population grows at 3 percent and national income grows at 2 percent, then
a. per capita income is declining b. the economy's standard of living is increasing c. per capita income is negative d. per capita income is growing e. human capital is declining
The crowding-out effect refers to the situation where
A. foreign spending is favored over domestic spending. B. government borrowing reduces private sector borrowing and spending. C. the United States Treasury prints new money that the government uses to force increases in private investment. D. the creation of large amounts of money to finance government borrowing produces an inflation that forces private spending to decrease.
If a strong, persistent trend in the exchange rate appears to be inconsistent with any form of economic fundamentals, it is called
A. a speculative bubble. B. overshooting. C. uncovered speculation. D. exchange rate parity.