The cost of capital and the cost of debt should be identical when economic profits are positive

Indicate whether the statement is true or false


False

Economics

You might also like to view...

The United States became a net international debtor in 1985 for the first time since World War I

Indicate whether the statement is true or false

Economics

The Reagan administration's policies were aimed at managing aggregate demand

a. True b. False Indicate whether the statement is true or false

Economics

Which of the following would likely lead to a tragedy of the commons?

a. Causing a reduction in the fish population by overfishing an area b. Polluting the ocean and causing the death of numerous fish varieties c. Allowing professional fishermen to fish in international waters d. Failing to regulate the practices of the fishing industry

Economics

Answer the next question on the basis of the following consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 30 percent. All figures are in billions.AssetsLiabilities & Net WorthReserves$51  Checkable Deposits$140Loans109  Stock Shares130Securities100 Property10?Refer to the above data. The maximum amount by which the commercial banking system can expand the supply of money by lending is:

A. $23.1 billion. B. $27 billion. C. $15 billion. D. $30 billion.

Economics