Which of the following statements is true?
A. Leverage increases expected return and increases risk.
B. Leverage increases expected return and reduces risk.
C. Leverage decreases expected return and increases risk.
D. Leverage decreases expected return but has no effect on risk.
Answer: A
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The above table contains information about the nation of Syldavia. There are no income taxes or imports in this nation. When real GDP is $15 billion, firms' inventories experience an unplanned
A) increase of $5 billion. B) decrease of $10 billion. C) increase of $4 billion. D) decrease of $1 billion. E) increase of $10 billion.
Public school teachers are known to have low wages. Which of the following would push the teachers' wages lower?
a. Public school teacher jobs are difficult. b. Public school teachers are required to be college graduates. c. Public school teachers belong to a union. d. Teaching in a public school has a high element of personal satisfaction.
When money is held as an asset, it is serving as
A. a standard of value. B. a standard of deferred payment. C. a medium of exchange. D. a store of value.
You agree to lend a friend $20,000 for a year at an annual interest rate of 45%. At the end of the year your friend must pay you ________ in interest.
A. $133 B. $750 C. $1,900 D. $9,000