Under what conditions is it most likely that a corporation will issue new stock as a form of finance?
A. When the interest rate is rising
B. When the interest rate is falling
C. When the firm’s stock price is falling
D. When bond prices are very high
Answer: A
You might also like to view...
The data in the above table indicate that when the price level is 100
A) inventories fall and the price level rises. B) the economy is in a long-run macroeconomic equilibrium. C) inventories rise and the price level falls. D) the unemployment rate is at its equilibrium level.
The ultimate effect of a reduction in the money supply is: a. a leftward shift of the aggregate demand curve
b. a rightward shift of the short-run aggregate supply curve. c. a movement upward along the aggregate demand curve. d. a movement downward along the aggregate demand curve. e. a movement upward along the short-run aggregate supply curve.
Real estate values derive from the interaction of three different sectors in the economy. Which of the following sectors serves to allocate financial resources among households and firms requiring funds?
A. User market B. Capital market C. Government D. Property market
The unemployment caused by unions and by the threat of unionization is an example of:
A. voluntary unemployment B. the discouraged-worker effect. C. efficiency wages. D. the conflict between insiders and outsiders.