(Last Word) Leverage in the financial system:
A. magnifies profits but reduces losses.
B. magnifies both profits and losses.
C. reduces profits but magnifies losses.
D. reduces both profits and losses.
B. magnifies both profits and losses.
You might also like to view...
The above figure shows the short-run production function for Albert's Pretzels. The average product of labor
A) increases first and then decreases. B) decreases first and then increases. C) decreases throughout. D) increases throughout.
The combined effect on the loanable funds market of a new technology that increases the marginal physical product of capital and a shift in consumers' preferences for more present consumption is
a. an increase in the interest rate b. a decrease in the interest rate c. unclear because each of the effects has an opposite influence on the interest rate d. an increase in the quantity of loanable funds demanded and supplied on the market e. a decrease in the quantity of loanable funds demanded and supplied on the market
A monthly budget can help you achieve financial security by
A) expanding the borrowing limits on your existing credit cards and increasing the number of credit cards you hold. B) helping you choose stocks that are most likely to increase in price. C) increasing your financial awareness and helping you allocate your funds more effectively. D) reducing the likelihood that you will face unexpected expenditures for maintenance and repairs.
A perfectly competitive firm maximizes profits by producing at the point where
A. the distance between price and average total cost is the greatest. B. the distance between price and marginal cost is the greatest. C. price equals marginal cost. D. price equals average total cost.