The cost of capital is determined by
A) bankers.
B) the capital market.
C) the federal budget deficit.
D) the foreign exchange market.
B
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Economic growth depends more on technological change than on increases on capital per hour worked
Indicate whether the statement is true or false
The United States is currently a net debtor nation. This means that
A) U.S. consumers have a great variety of foreign goods available to them. B) the U.S. economy is in serious trouble if government policies don't change quickly. C) capital outflows from the U.S. are greater than inflows. D) the U.S. is seen as a poor investment by foreign citizens and firms.
Equilibrium in the foreign exchange market occurs:
a. at the point where the foreign exchange demand and supply curves intersect. b. at the point where the foreign exchange demand and supply curves reach maximum separation. c. when two nations' economic leaders agree on the appropriate exchange rate. d. when two nations' diplomatic leaders agree on an exchange rate that meets both countries' needs. e. only by chance, if at all, because they change very frequently.
Last year Christine worked as a consultant. She hired an administrative assistant for $15,000 per year and rented office space (utilities included) for $3,000 per month. Her total revenue for the year was $100,000. If Christine hadn't worked as a consultant, she would have worked at a real estate firm earning $40,000 a year.Christine's opportunity cost of working as a consultant last year was ________.
A. $36,000 B. $15,000 C. $51,000 D. $40,000