How is the use of leverage a "double-edged sword"?
What will be an ideal response?
Both profits and losses are increased by using leverage.
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According to the theory of the invisible hand, if buyers and sellers are free to pursue their own self-interest, the result often will be:
A. an equitable allocation of resources. B. an incomplete allocation of resources. C. an efficient allocation of resources. D. the exploitation of productive resources.
The stock of capital ________ with any gross investment and ________ with any depreciation
A) increases; increases B) decreases; increases C) decreases; decreases D) increases; decreases
Hoe does etiquette help in transaction of goods between two parties?
A house is a private good because it is nonrival and nonexcludable
Indicate whether the statement is true or false