A company is called insolvent when
a. there is a rapid decline in an asset price
b. its debts exceed the value of its assets.
c. there is a decline in confidence in the company.
d. it experiences a credit crunch.
b
You might also like to view...
A production function: a. shows the relationship between a firm's costs and revenues
b. shows the relationship between production and profits. c. shows the relationship between inputs and the maximum output that can be produced from those inputs. d. shows the relationship between variable inputs and fixed inputs.
Exhibit 7-1 Consumer Price Index Year ConsumerPrice Index 1 100 2 110 3 115 4 120 5 125 As shown in Exhibit 7-1, the rate of inflation for Year 2 is:
A. 5 percent. B. 10 percent. C. 20 percent. D. 25 percent.
If the marginal propensity to save (MPS) is 0.25, the value of the spending multiplier is:
a. 1. b. 2. c. 4. d. 9.
Net exports plus net capital inflows equal:
A. the international trade gap. B. net capital outflows. C. the trade balance. D. zero.