The U.S. economy rarely grows
a. True
b. False
Indicate whether the statement is true or false
False
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Under most circumstances, a corporate firm will choose to use retained earnings as a way to finance its activities because
A. it carries a higher cost than issuing new shares of stock. B. there is less regulatory review when internal funds are used for financing. C. current stockholders experience the dilution of their share of stock. D. All of these alternatives are reasons that corporations prefer to use retained earnings.
The basic tools of supply and demand apply to
a. both markets for goods and services and markets for labor services. b. markets for goods and services but not to markets for labor services. c. markets for goods and services but not to markets for factors of production. d. all markets except those in which demand is derived demand.
When consumers' purchasing power decreases, the economy will experience a period of
A. contraction. B. expansion. C. containment. D. emergence.
A nonpolicy reason for the reduction in the natural rate of unemployment is the
A. expansionary nature of monetary policy. B. aging of the U.S. labor force. C. decline in interest rates. D. growing federal budget surplus.