Firms should stop borrowing funds
a. as soon as the bank raises the interest rate.
b. when the MRP of borrowed funds is equal to the cost of borrowing.
c. whenever the future of the firm looks gloomy.
d. if their debts are more than 25 percent of the value of the firm.
b
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Keynes argued that if the economy is in a severely depressed state then __________ is constant
A) real GDP B) the price level C) velocity D) nominal GDP
The formal recognition of the threat to the European Union allowed for ________ because the systemic risk clauses of Articles 123 and 125 were invoked.
A. cross-national bailouts B. purchase of debt by the European Central Bank C. tax cuts D. increases in spending
If your income increases from $30,000 to $40,000 and your savings increases from $2,000 to $4,000, your marginal propensity to save (MPS) is:
A. 0.2. B. 0.4. C. 0.5. D. 0.8.
Which nation achieved the ideal communist society as described by Marx?
A. Castro's Cuba B. Mao's China C. Stalin's Soviet Union D. No nation has achieved Marx's vision of communist society.