If Urban Outfitters borrows $25 million from a bank to finance the construction of a new store, this is an example of
A) a bond market transaction. B) a stock market transaction.
C) indirect finance. D) direct finance.
C
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Barbara buys the same market basket each week and spends $60 on it. This week Barbara brought $60 to the store but could not buy her usual market basket. One explanation for this is ________.
A. she became unemployed B. there was an increase in real GDP C. the GDP price index has decreased D. there was inflation
Suppose that business firms spend $500 million on new capital equipment this year. Of this $500 million, $300 million was spent on domestically produced capital and $200 million was spent on foreign-produced capital
All else equal, these transactions contribute ________ to GDP. A) $500 million B) $300 million C) $800 million D) $200 million E) $0
If equilibrium price falls and the equilibrium quantity of the good purchased decreases, what has happened to either the supply curve or to the demand curve?
A) Supply increased. B) Demand decreased. C) Demand increased. D) Supply decreased.
The idea that changes in investment and changes in national income are mutually reinforcing is the foundation of
a. the sunspot theory b. the war-induced cycle c. the housing cycle d. the innovation cycle e. internally generated cycles