In which of the following examples does the firm acquire financial capital from households through a financial intermediary?
A. The firm uses retained earnings to purchase shares of its stock owned by a mutual fund company.
B. A firm sells a bond to John Doe.
C. The firm sells a bond to an employee pension fund.
D. The firm uses retained earnings to purchase shares of its stocks owned by individuals.
Answer: C
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A consumer will continue to purchase items until the budget is exhausted and ________ ________ is equal
a. consumer surplus b. marginal utility c. marginal cost d. consumer deficit
Paul, a U.S. citizen, builds a telescope factory in Israel. His expenditures
a. increase U.S. and Israeli net capital outflow. b. increase U.S. net capital outflow, but decrease Israeli net capital outflow. c. decrease U.S. net capital outflow, but increase Israeli net capital outflow. d. None of the above is correct.
Assume that a retailer sells 800 six packs of Dr. Pepper per day at a price of $3.00/six-pack. You, as an economic analyst, estimate that the cross-price elasticity between Dr. Pepper and Coca-Cola is 0.6. If the retailer raises the price of Coca-Cola by
10%, how would the sales of Dr. Pepper be affected, ceteris paribus? A) Sales of Dr. Pepper would rise by 48 six-packs B) Sales of Dr. Pepper would rise by 10% C) Sales of Dr. Pepper would fall by 48 six-packs D) None of the above
The business cycle depicts:
A. fluctuations in the general price level. B. the phases a business goes through from when it first opens to when it finally closes. C. the evolution of technology over time. D. short-run fluctuations in output and employment.