Compared to bondholders, stockholders
a. face higher risk and have the potential for higher returns.
b. face higher risk but receive a fixed payment.
c. face lower risk and have the potential for higher returns.
d. face lower risk but receive a fixed payment.
a
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Which of the following does NOT represent a possible shape of the long-run average cost curve?
A) downward sloping B) upward sloping C) U-shaped D) vertical
The dollar appreciates against foreign currencies. This makes foreign-produced goods __________ for Americans and U.S.-produced goods __________ for foreigners. As a result, U.S. __________ fall and U.S. __________ rise
A) more expensive; cheaper; imports; exports B) cheaper; more expensive; exports; imports C) cheaper; more expensive; imports; exports D) more expensive; cheaper; exports; imports
According to the interest-rate-based monetary policy transmission mechanism, an increase in the money supply will
A) lead to an increase in investment spending and an increase in real GDP which is greater than the increase in investment spending. B) lead to an increase in investment spending and a decrease in real GDP that is equal to the increase in investment spending. C) lead to a decrease in investment spending and an increase in real GDP that is equal to the decrease in investment spending. D) lead to a decrease in investment spending and an increase in real GDP which is greater than the decrease in investment spending.
According to the new growth theory, ________ is the factor that motivates technological change
A) diminishing returns B) random chance C) decisions about how much human capital to acquire D) profit E) the replication of activities