The authors note that the goal of maximizing the market value of the firm may be more appropriate than maximizing short-run profits because:
A) the market value of the firm is based on long-run profits.
B) managers will not focus on increasing short-run profits at the expense of long-run profits.
C) this would more closely align the interests of owners and managers.
D) all of the above
D
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Why are water companies considered a natural monopoly?
What will be an ideal response?
Using the table above, if the current market value of the dollar is 70 francs
A) investor A expects dollar appreciation, but B and C expect depreciation. B) investor A expects dollar depreciation, but B and C expect appreciation. C) all three investors expect the dollar to appreciate. D) all three investors expect the dollar to depreciate.
The balance of payments account which records foreign investment in the United States and U.S. investments abroad is the
A) capital and financial account. B) current account. C) official settlements account. D) None of the above because foreign investment in the United States is included in one account and U.S. investment abroad is included in another account.
If the Fed sells more bonds to the public, then the money supply will:
A. Decrease and the aggregate demand curve will shift to the right. B. Increase and the aggregate demand curve will shift to the right. C. Increase and the aggregate demand curve will shift to the left. D. If the Fed sells more bonds to the public, then the money supply will shift to the left.