The supply of loanable funds has a ________ slope because the greater the interest rate, the ________ the reward to saving, and the ________ the quantity of loanable funds supplied
A) positive; lesser; lesser B) negative; lesser; greater
C) positive; greater; lesser D) positive; greater; greater
D
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If a firm wants to finance a new project, it can obtain financing by
A) using its retained earnings. B) issuing and selling new shares of stock. C) selling corporate bonds to the public. D) all of the above.
Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. Calculators Per HourComputers Per HourSmith10010Jones1206 If Smith and Jones are dividing their time efficiently and producing fewer than 10 computers and more than 120 calculators per hour, then Smith will ________ and Jones will ________.
A. produce only computers; produce only calculators B. split his time between computers and calculators; produce only calculators C. produce only calculators; split his time between computers and calculators D. produce only calculators; produce only computers
A firm will not shut down in the long run as long as the firm's revenue:
A. is larger than the firm's variable cost. B. is greater than the firm's marginal cost. C. is greater than the fixed cost. D. is less than the total cost.
When interest rates rise, security values rise.
Answer the following statement true (T) or false (F)