Short-term securities are usually called ________ and long-term securities are usually called ________.
A. loans; notes
B. bills; bonds
C. bonds; stocks
D. notes; bills
Answer: B
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Which ratio correctly highlights the similarity between neoclassical theory and Tobin's q theory?
A) the marginal product of capital divided by the user cost of capital B) a firm's stock value divided by the value of its capital stock C) a firm's capital stock divided by the value of its inventories D) a firm's investment spending divided by the user cost of capital
When the market price is above the equilibrium price, suppliers are unable to sell all they want to sell
a. True b. False Indicate whether the statement is true or false
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
When a firm has an extremely large output, it will likely experience
A. both economies of scale and diseconomies of scale. B. neither economies of scale nor diseconomies of scale. C. economies of scale, but not diseconomies of scale. D. diseconomies of scale, but not economies of scale.