If a firm raises funds by recruiting additional owners to invest in the firm,
A) the firm's stock price would decrease. B) the firm's financial capital would increase.
C) the firm's financial capital would decrease. D) the firm's net worth would decrease.
B
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An increase in the U.S. interest rate
a. raises the opportunity cost of holding dollars. b. induces households to increase consumption. c. shifts money demand to the right. d. leads to a depreciation of the U.S. dollar.
Discuss how unions affect prices indirectly.
What will be an ideal response?
Because the United States has ________ advantage compared to China in producing airplanes, China can buy airplanes from the United States at a ________ opportunity cost than that at which China can produce them
A) comparative; lower B) comparative; higher C) absolute; lower D) absolute; higher E) None of the above because China will produce airplanes and sell them to the United States.
Excessive unemployment benefits and government overregulation are part of the ________ hypothesis of why a nation's ________ unemployment rate can be high
A) hysteresis, cyclical B) hysteresis, natural C) structuralist, cyclical D) structuralist, natural