Would a corporation seeking to raise capital sell its new shares on the stock market? If not, why not?
A corporation seeking to raise capital through the issuance of new stock rarely uses a stock market, as stock markets deal in previously issued, not new shares. A corporation seeking to raise capital by selling new stock would use the services of an investment bank, which deals in new shares of stock.
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
All of the following are characteristics of the pure coordination game except
A) Nash equilibria exist at every outcome where players successfully coordinate. B) each player has a dominant strategy. C) the payoff for coordinating is higher than the payoff for not coordinating. D) the two general outcomes are that the players either coordinate with each other or they do not.
Economic activity initiated by market participants imposes costs on free riders
Indicate whether the statement is true or false
Suppose government purchases increase by $100 million in an economy, which leads to total output increasing by $500 million. The size of the multiplier is _____
Fill in the blank(s) with the appropriate word(s).