The smaller the fraction of an investment financed by borrowing
A) the greater the potential return and the smaller the potential loss on that investment.
B) the greater the potential return and potential loss on that investment.
C) the smaller the potential return and potential loss on that investment.
D) the smaller the potential return and the greater the potential loss on that investment.
C
You might also like to view...
If a 10% increase in the price of one good, A, results in an increase of 5% in the quantity demanded of another good, B, then it can be concluded that A and B are
A. complementary goods. B. substitute goods. C. secondary goods. D. independent goods.
All of the following characteristics are common to both monopolistic competition and perfect competition except
A) firms act to maximize profit. B) firms take market prices as given. C) entry barriers into the industries are low. D) the market demand curves are downward-sloping.
An information is beneficial to the decision-maker only when:
a. its marginal cost is zero. b. its marginal benefits exceeds its marginal cost. c. the possibility of inaccurate transmission is nullified. d. its marginal benefit is positive.
An increase in short-run aggregate supply shifts the curve ______.
a. from SRAS2 to SRAS1
b. from LRAS2 to SRAS1
c. from SRAS1 to LRAS1
d. from SRAS1 to SRAS2