"Plowback" is a preferred source of financing a corporation because
a. it is fairly easy, compared to issuing stocks.
b. it is not subject to double taxation.
c. selling bonds involves the high cost of money.
d. stock markets are subject to random walks.
a
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Assuming that wheat and corn can both be grown on the same type of land, a decrease in the price of corn, other things being equal, will cause a(n):
a. downward movement along the supply curve for wheat. b. upward movement along the supply curve for wheat. c. rightward shift in the supply curve for wheat. d. leftward shift in the supply curve for wheat.
The U.S. dollar bills you sometimes have in your wallet are:
A. assets of the Federal Reserve. B. your liabilities if you hold that note. C. liabilities of the Federal Reserve until it is spent. D. liabilities of the Federal Reserve.
Which curve shown below represents the market supply given the following individual supply tables?
PriceS1S2S33060156040702080508025100609030120
A. A B. B C. C D. D
Suppose the demand for rental apartments decreased substantially. We would expect to observe
A) no change in rent and a sharp reduction in quantity supplied in the short run, and an even larger decrease in quantity supplied in the long run. B) a large decrease in quantity supplied in the short run, followed by a counter-reaction and an increase in quantity supplied in the long run. C) a small decrease in quantity supplied and significantly lower rents in the short run, and quantity supplied to decrease much more in the long run. D) a large decrease in quantity supplied in the short run and the long run, but much larger reductions in rent in the long run.