The parties to a swap are formally called the
A) counterparties.
B) optioners.
C) short and long positions.
D) bond- and billholders.
A
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Use the concept of intertemporal substitution to explain how, in real business cycle models, a change in potential output causes an immediate change in actual output
What will be an ideal response?
As the corporation uses more debt financing, which of the following holds true for the stockholders?
A. The expected return to the stockholders increases and the standard deviation of the return increases. B. The expected return to the stockholders decreases and the standard deviation of that return decreases. C. The expected return to the stockholders increases and the standard deviation of the return decreases. D. The expected return to the stockholders decreases and the standard deviation of the return increases.
In perfect competition, marginal revenue
A) increases as more is sold. B) decreases as more is sold. C) is equal to the market price. D) is zero. E) is always greater than marginal cost.
Consider the market for camera film. If more people start using digital cameras, which do not require film,
A) the supply curve of film shifts rightward. B) the demand curve for film shifts leftward. C) there is a movement up along the demand curve for film. D) there is a movement down along the demand curve for film. E) neither the demand curve nor the supply curve for film shifts; instead there is a movement along both.