An engineer with a major power company decides to leave his job because he believes he has found a way to deliver Internet service across the electrical grid and he wants to start up his own business. He doesn't have very much cash or collateral
Which method of financing do you believe he will most likely use and why?
Venture capital is his most likely source. The reason is that bank financing is not likely to work because the bank will perceive the venture as being too risky. Also, since he doesn't have any collateral this would be another reason that the loan would not likely be approved. The venture capitalist is still taking on the same risk but is able to spread that risk over a diversified portfolio of different projects.
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According to the Quantity Theory of Money (Chapter 3), the increase in the money supply from $39.7 billion in 1940 to $99.2 billion in 1945 should have fueled strong inflation. However, it did not because
(a) the World War II (1941–45) (WWII) economy was operating below full employment levels of production. (b) the WWII economy was operating at full employment levels of production. (c) the WWII economy was operating above full employment levels of production. (d) price controls prevented the surge in prices across the economy.
Any point inside a production possibilities curve indicates that the economy is using all its available resources and technology
Indicate whether the statement is true or false
Which of the following is an example of protections granted to workers during the 1930s?
a. Carlos was part of an employee group that negotiated salaries with the owner. b. Amelia took 12 weeks of parental leave following the birth of her daughter. c. Jody had the right to remain silent during her interrogation by police. d. Giba used a wheelchair, so her employer provided an adjustable-height desk.
The usefulness of standard goods market price indexes for judging policy is limited because:
A. they include only the price of gold and silver. B. they do not include the price of assets. C. the United States is no longer on the gold standard. D. they include the prices of assets.