What information is typically included in a prospectus?
What will be an ideal response?
The prospectus should contain all information about the firm that a potential investor would find relevant to making a decision to buy the firm's stocks or bonds, including the firm's profitability and net worth, as well as risks faced by the firm, such as pending lawsuits.
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In the long run, input demand becomes more
A) elastic. B) inelastic. C) unit-elastic. D) cost efficient.
Economists believe that scarcity forces everyone to
a. satisfy all their wants b. abandon consumer sovereignty c. limit wants d. create unlimited resources e. make choices
If the U.S. exports passenger jet aircraft, what is the effect in the foreign exchange market?
a. It will increase demand for U.S. dollars. b. It will decrease demand for U.S. dollars. c. It will increase supply of U.S. dollars. d. It will decrease supply of U.S. dollars.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real GDP and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. Real GDP falls, and reserve-related (central bank) transactions become more negative (or less positive). b. Real GDP falls and reserve-related (central bank) transactions remain the same. c. Real GDP and reserve-related (central bank) transactions remain the same. d. Real GDP rises, and reserve-related (central bank) transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.