What determines the creditworthiness of any organization, including the federal government?
a. the size of its debt relative to its income base
b. the interest rate at which it can borrow money
c. the length of time it has existed
d. the length of time it is expected to operate
A
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Which of the following individuals is the best example of a structurally unemployed worker?
A) a recent college graduate who has entered the labor force B) an individual who has been laid off from his job because of a business cycle recession C) an automobile worker who has lost her job because of an increase in automobile imports and does not have the skills currently needed by businesses D) an individual who quits one job in the hope of finding a better job
Another name for stockholder wealth maximization is
A) profit maximization. B) maximization of earnings per share. C) maximization of the value of the common stock. D) maximization of cash flows.
The decline in the US manufacturing sector was the result of:
a. increasing productivity in the manufacturing sector. b. the increasing ability of consumers to purchase foreign manufactured goods more cheaply. c. faster growth of the service sector. d. All of the above are correct. e. Only b and c are correct.
The nominal rate of interest is any rate of interest below 3 percent
a. True b. False Indicate whether the statement is true or false