The cost of servicing the debt may increase if
A. Interest rates rise.
B. Deficits become smaller.
C. The debt shrinks.
D. The debt is held internally.
Answer: A
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Which of the following will NOT lead to increased capital investment within a country?
A) increased uncertainty about private property rights B) increased certainty about private property rights C) increased certainty about being able to reap the gains from investing D) the decreased possibility of nationalization of private property
In the above figure, the average product of labor at point c is
A) 10. B) 5. C) 2. D) None of the above answers is correct.
Ed's Electronic Devices has an asset beta of 1.2. The market rate of return is 12% and the risk-free rate of return is 2%. Ed is considering updating his production technology
If he does so, he expects the cash streams indicated in the table below. Given this information, should Ed update his production technology? Year Cashflow Present Value 0 -$100,000 1 $25,000 2 $25,000 3 $25,000 4 $25,000 5 $25,000 6 $25,000 Total
The idea that some people engage in risky behavior due to the fact that they have good health care is known as
A) moral hazard. B) risk aversion. C) zero-sum game. D) risk-taking behavior.