One way to decrease leverage is increasing capital
a. True
b. False.
A
You might also like to view...
Suppose the economy is suffering in a recessionary period. Firms are facing increasing inventories and individual consumers are increasing their saving to prepare for hard times ahead. What is likely to happen to the economy and can it correct itself and grow toward full employment in the short run?
What will be an ideal response?
If people anticipate higher inflation, but inflation remains the same then
a. the short-run Phillips curve would shift right and unemployment would rise. b. the short-run Phillips curve would shift right and unemployment would fall. c. the short-run Phillips curve would shift left and unemployment would rise. d. the short-run Phillips curve would shift left and unemployment would fall.
The term allocative efficiency refers to a condition in the economy where the resources are being used
A. in the areas that they are most productive or best suited for. B. to produce cake and not bread. C. in various ways and that shifting resources from one area to another is cost free. D. in the most flexible but not most productive ways. E. in the least productive ways.
The following is an example of adverse selection
a. A majority of those applying for well paid jobs are well qualified b. More reckless drivers opt for cars with fewer safety devices c. Individuals living in less secure neighborhoods want to buy more insurance d. Individuals with a strong family history of heart diseases opt to buy less insurance