In finance, leverage is using:
A. the equity one owns to pay for investments planned in the future.
B. borrowed money to pay for investments.
C. forecasted future earnings to pay for current loans.
D. predicted earnings to pay for current investments.
Answer: B
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The salary of the president of the United States in 2000 was $400,000 . In 1940, the president's salary was $75,000 . If the Consumer Price Index was 8.1 in 1940 and 100 in 2000 . the 1940 presidential salary measured in terms of the purchasing power of the dollar in 2000 would be:
a. less than $75,000. b. less than $400,000. c. approximately $668,850. d. approximately $926,000.
When a firm experiences increasing marginal returns, the marginal cost of output also increases. Similarly, when the firm experiences decreasing marginal returns, the marginal cost of output also decreases
Indicate whether the statement is true or false
Curly pays $12,000 in taxes and earns $150,000. Moe pays $7,000 in taxes. If the tax system is proportional, then Moe's income is:
A. $125,000. B. $98,000. C. $87,500. D. $56,000.
In a given year, a country's GDP = $9841, net factor payments from abroad = $889, taxes = $869, transfers received from the government = $296, interest payments on the government's debt = $103, consumption = $8148, and government purchases = $185. The country had private saving equal to
A. $2112. B. $2397. C. $285. D. $3850.