Which of the following is true if investors expect greater future profits from a company?
A. The price of the company's bonds decreases.
B. The current yield on the company's bonds decreases.
C. The par value of the company's bonds decreases.
D. The demand for the company's bonds decreases.
Answer: B
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To eliminate losses in a perfectly competitive market, firms exit the industry. This exit results in
A) an increase in market supply. B) a decrease in market supply. C) an increase in market demand. D) a decrease in market demand. E) a decrease in both the market supply and the market demand.
A higher expected price tomorrow will tend to
A) shift today's demand curve to the left. B) shift today's demand curve to the right. C) have no effect on today's demand curve. D) have no effect on tomorrow's demand curve.
A Real Option Value is:
a. An option that been deflated by the cost of living index makes it a "real" option. b. An opportunity cost of capital. c. An opportunity to implement cost savings or revenue expansion in a flexible business plan. d. An objective function and a decision rule that comes from it. e. Both a and b.
Mugabe's new money:
A. didn't increase inflation rates in Zimbabwe. B. caused Zimbabwe's deflation to get even worse. C. helped pull Zimbabwe out of its recession. D. didn't increase productivity in Zimbabwe.