Yolanda wants to expand her microbrewery business by buying out a competitor and is going to sell newly-issued corporate bonds to do so. This is an example of using ________ for her expansion plans
A) coupon payments B) direct finance C) indirect finance D) retained earnings
B
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After an unexpected ________ in the price of oil, the long-run adjustment decreases the price level and ________ the unemployment rate as they return to their original levels
A) increase; increases B) increase; decreases C) decrease; decreases D) decrease; increases
Suppose that John Maestro, the owner of a tennis shop in Evanston, Illinois, decides to purchase a new machine that restrings tennis rackets in half the time it formerly took. The new technology costs $1,000 . and the MPC is 0.80 . How much real GDP will be generated from John's $1,000 initial investment?
a. $200 b. $500 c. $1,000 d. $2,000 e. $5,000
Fiscal policy and monetary policy are economic stabilization policies designed to
A. prolong recessions. B. prolong inflation. C. stabilize prices. D. decrease employment.
For perfectly competitive firms,
A. total revenue equals price. B. marginal revenue equals price. C. marginal revenue equals total revenue. D. all of the above