The supply-side checklist includes
a. higher taxes
b. more government regulation
c. more government spending
d. less union power in wage determination
e. raising transfer payments
D
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Refer to Figure 11-1. Within a country, the impact of wars and revolutions and their subsequent destruction of capital is reflected in the per-worker production function in the figure above by a movement from
A) C to A. B) A to B. C) B to A. D) B to C.
Which of the following will increase (V0), the shareholder wealth maximization model of the firm: V0•(shares outstanding) = ??t=1 (? t ) / (1+ke)t + Real Option Value
a. Decrease the required rate of return (ke). b. Decrease the stream of profits (?t). c. Decrease the number of periods from ? to 10 periods. d. Decrease the real option value. e. All of the above.
Kyle puts a greater proportion of his portfolio into government bonds. Kyle's action
a. increases both risk and the average rate of return. b. decreases both risk and the average rate of return. c. increases risk, but decreases the average rate of return. d. decreases risk, but increases the average rate of return.
What happens as the interest rate rises?
A. Planned investment spending also rises. B. The opportunity cost of using retained earnings to finance investment spending rises. C. Planned investment spending remains constant since it depends on profit projections not interest rates. D. The number of profitable investment opportunities declines.