A venture capital fund buys the __________ of a new company and hopes to profit from __________
A) debt; repayment of the debt at maturity
B) debt; interest payments on that debt
C) equity; dividends from the equity
D) equity; eventual sale of that equity
D
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The principle of comparative advantage explains specialization and trade among countries but not among individuals.
Answer the following statement true (T) or false (F)
An equilibrium in the presence of price floors can be restored by increased consumer effort to obtain scarce goods. ?
Answer the following statement true (T) or false (F)
The figure above shows the market for milk in Cowland. If a subsidy paid to producers of $1 per gallon of milk is introduced, what is the price that consumers pay?
A) $3.00 a gallon B) between $3.00 and $4.00 per gallon C) $4.00 a gallon D) between $4.00 and $5.00 per gallon
Explain why the demand for loanable funds slopes downward and why the supply of loanable funds slopes upward