The higher are a firm's risk-corrected returns,
A) the lower are its labor costs.
B) the higher are its opportunity costs.
C) the more advantage it has in obtaining investor financing.
D) the more difficulty it will have financing its expansion plans.
C
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A bank cannot create money unless its ________
A) required reserves are greater than actual reserves B) excess reserves are zero C) desired reserves are greater than actual reserves D) excess reserves equal deposits multiplied by the reserve ratio
Suppose the government wants to finance housing for low-income families by placing a tax on the purchase of luxury homes. Assume the government defines a luxury home as a home that is purchased for at least $1 million
This tax is consistent with the A) social equity principle. B) benefits-received principle. C) ability-to-pay principle. D) horizontal-equity principle.
In Fisher's model of the determination of the rate of return, the price of a "future good" is:
a. less than the price of a current good if the interest rate is negative. b. equal to the price of a current good if the interest rate is positive. c. greater than the price of a current good if the interest rate is positive. d. less than the price of a current good if the interest rate is positive.
As the price of cookies increases, firms that produce cookies will:
A. increase the supply of cookies. B. decrease the supply of cookies. C. increase the quantity of cookies supplied. D. decrease the quantity of cookies supplied.