Financing an investment with debt ________ the net present value of the investment because interest payments ________ tax deductible and the full amount of the principal is due in ________.
A) decreases; are; the present time
B) increases; are not; the future
C) increases; are; present time
D) increases; are; the future
D) increases; are; the future
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Net worth is
A) a measure of a firm's profits. B) the difference between a firm's assets and liabilities. C) part of stockholders' equity. D) listed on the asset side of a firm's balance sheet.
A decrease in aggregate expenditure has what result on equilibrium GDP?
A) Equilibrium GDP falls. B) Equilibrium GDP rises. C) Equilibrium GDP is not affected by a decrease in aggregate expenditure. D) Equilibrium GDP may rise or fall depending on the size of the decrease in aggregate expenditure relative to the initial level of GDP.
The Russian government wants to reduce the consumption of vodka. A one hundred rouble tax on each bottle purchased may reduce the consumption of vodka under which circumstance(s)?
A) Vodka is an inferior good. B) Vodka is a normal good. C) Vodka is an inferior good and the taxes collected from this tax are rebated to consumers. D) Vodka is a normal good and the taxes collected from this tax are rebated to consumers. E) both B and C
Unionism is much more prevalent in the United States than in other industrialized countries
a. True b. False Indicate whether the statement is true or false