If a firm sells a total of 100 shares of stock, then
a. each share represents 1 percent of the firm's indebtedness.
b. each share represents ownership of 1 percent of the firm.
c. the firm is engaging in term finance.
d. All of the above are correct.
b
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Under a nominal GDP targeting rule, the Federal Reserve
A) changes the interest rate only when real GDP, and hence nominal GDP, is off target. B) cannot use the federal funds rate to conduct monetary policy. C) must publish its expected inflation rate. D) lowers its interest rate when nominal GDP falls below target. E) loses its ability to influence the inflation rate.
Use the above table. If firms 3 and 4 merge, the four-firm concentration ratio will
A) increase from 75 percent to 80 percent. B) increase from 60 percent to 75 percent. C) decrease from 75 percent to 60 percent. D) not change.
The idea of policy making taking place in response to a predetermined set of rules is referred to as
A) active policy making. B) discretionary policy making. C) passive policy making. D) Keynesianism.
J. J. Joubert, of the Joubert Dairy, tells his friend Jacques that the average revenue he gets for a liter of milk is $1 . We know then that $1 is the dairy's
a. marginal profit b. marginal cost c. price d. total revenue e. total profit