The main reason why banks are the leading source of external finance for businesses is
A) the interest rates on bank loans are usually lower than interest rates on corporate bonds.
B) banks have an information-cost advantage in reducing adverse selection problems.
C) interest paid on bank loans is deductible against the corporate income tax, whereas interest paid on corporate bonds is not.
D) government regulators encourage small businesses to obtain funding from banks.
B
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Levying a tariff on an imported good
A) shifts the demand curve down for the good. B) shifts the supply curve up for the good. C) Both A and B. D) Not enough information to determine.
Most of the reduction in poverty rates since World War II occurred as a result of the
A. end of "welfare as we know it." B. 1960s War On Poverty. C. 1940s War On Poverty. D. 1996 welfare reforms.
A ______ tax would charge the same percentage to people, regardless of income level.
a. proportional b. progressive c. regressive d. marginal
Facebook is a social network that is subject to network externalities.
a. true b. false