Information in a firm's financial statements
A) assists investors who are considering buying the firm's stock.
B) helps the firm's managers make decisions.
C) guide resource allocation in the economy.
D) all of the above
D
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Suppose the nominal interest rate is 5% and the rate of inflation is 5%. The real interest rate is therefore
A) 0%. B) 1%. C) 5%. D) 6%.
In the used car market, adverse selection can be limited by
A) offering warranties. B) establishing loan limits. C) requiring high deductibles. D) requiring low deductibles.
Refer to the accompanying figure.
Based on the Keynesian cross diagram, if output equals 5,000, planned aggregate expenditure is ________ output, and firms will ________ production in response.
A. less than; decrease B. equal to; not change C. less than; increase D. greater than; decrease
A decrease in demand, with no change in supply, will lead to ________ in equilibrium quantity and ________ in equilibrium price.
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease