A high-risk premium makes default more likely.
Answer the following statement true (T) or false (F)
True
Payments increase with a high-risk premium and since higher expenses leave less to pay off the loan, a default seems more likely.
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Explain the significance of brand management to a firm that has differentiated its product. Comment specifically on the importance of obtaining a trademark
What will be an ideal response?
When the firm produces zero output, its variable cost is
a. zero b. the same as total cost c. the same as fixed costs d. the same as price e. infinite
In the article on China holding $4 trillion in dollars, for every dollar it holds in reserves, it prints
A. 6.5 fewer yuan for the domestic money supply. B. 10 additional yuan for the domestic money supply. C. 10 fewer yuan for the domestic money supply. D. 6.5 additional yuan for the domestic money supply.
Which firm would you expect to make the lowest profits, other things equal?
A. Bertrand oligopolist B. Sweezy oligopolist C. Stackelberg leader D. Cournot oligopolist