The ways to address agency costs include all EXCEPT
a. running background checks on prospective employees
b. requiring employees to punch time clocks
c. instituting longer work days
d. replacing closed offices with cubical office spaces
c
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Which of the following is not true with respect to underwriting?
A) Announcements of successful underwritings are called tombstones. B) Often a number of investments banks band together in a syndicate to market a new issue. C) Underwritings of new issues take place on the floor of the New York Stock Exchange. D) The investment bank typically guarantees an issuer of securities a price on the new issue.
As part of the "exchange rate channel of monetary policy," a higher money supply causes a __________ interest rate and thus __________ of the domestic currency
A) higher; appreciation B) higher; depreciation C) lower; appreciation D) lower; depreciation
Which of the following is NOT included in aggregate demand?
A) Demand for goods and services for consumption B) Investment in business plant and equipment C) Net exports D) Investment in Treasury bonds
The Commodity Credit Corporation (CCC) instituted several policies to improve the welfare of farmers. Which of the following best describes the programs' effects?
a. The CCC price supports mandated a one-price policy on all agricultural goods. b. The CCC made loans to farmers, using the farmers' future crops as collateral with recourse. c. The CCC price supports inefficiently allocated resources, which decreased welfare. d. If the commodity price increased, according to the free market, then the CCC would command and collect "excess" profits, i.e., revenues in excess of the one-price policy, for use as loanable funds.