The yield curve in an economic period where higher future inflation is expected would be ________
A) upward-sloping
B) flat
C) downward-sloping
D) lognormal
A
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Suppose business firms collectively become pessimistic about prospects for future profits because of continued worries about terrorism. Explain how this would affect investment, aggregate demand, output, and the price level in the short run and the long run.
What will be an ideal response?
Transfer prices affect the revenues and costs of the divisions involved but do not affect the revenues and costs of the company as a whole
Indicate whether the statement is true or false
Which of the following is not true?
a. Owners of preferred stock have a claim on the assets of a firm that is senior to the claim of common shareholders. b. Preferred shares carry special rights. c. The senior status and special rights may induce certain investors to purchase preferred shares of a firm, even though they would be unwilling to purchase common shares of the same firm. d. The senior status and special rights decrease the risks of preferred shareholders relative to common shareholders. e. Jurisdictional laws dictate the rights and obligations of the issuing firm and of the investor in the preferred shares.
Which of the following is NOT a consequence faced by companies that relocate their facilities?
a. relocation costs b. bad publicity c. drop in market share d. loss of goodwill from consumers