Equity finance is represented by which of the following?
A) when a firm borrows money from banks
B) when a firm sells bonds
C) when a firm sells shares of stock
D) when a firm draws down retained earnings
E) when a firm sells off part of its capital stock
C
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Which of the following is a difference between an oligopoly model with homogeneous products and a monopoly?
A) Firms in an oligopoly with homogeneous products earn positive economic profits in the long run, while a monopoly earns zero economic profits in the long run. B) Firms in an oligopoly with homogeneous products face stiff competition from its rivals, while there is no competition in a monopoly. C) There are huge barriers to entry in an oligopoly with identical products, while there are no barriers to entry in a monopoly. D) Firms in an oligopoly with identical products charge a price higher than marginal cost in the long run, while a monopoly charges a price lower than marginal cost in the long run.
Which of the following is not implied by the quantity equation?
a. If velocity is stable and money is neutral, an increase in the money supply creates a proportional increase in nominal output. b. If velocity is stable and money is neutral, an increase in the money supply creates a proportional increase in the price level. c. With constant money supply and output, an increase in velocity creates an increase in the price level. d. With constant money supply and velocity, an increase in output creates a proportional increase in the price level.
Which of the following buys goods for personal use?
a. consumer b. a person who is broke c. people who have not maxed out their credit cards d. client
Assuming the aggregate supply curve is vertical, which of the following is most likely to occur if the Fed pursues expansionary monetary policy?
A. The equilibrium output will increase but the price level will stay the same. B. The equilibrium price level will increase but output will stay the same. C. The equilibrium price level and output will both decrease. D. The equilibrium price level and output will both increase.