Which rate is the rate lenders charge their most trustworthy business borrowers?
a. discount
b. commercial
c. prime
d. LIBOR
c
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To find social costs
A) internal and private costs have to be added together. B) internal and external costs have to be added together. C) internal and implicit costs have to be added together. D) internal and production costs have to be added together.
Bailey's Barber Shop knows that a 5% increase in the price of their haircuts results in a 15% decrease in the number of haircuts purchased. What is the elasticity of demand facing Bailey's Barber Shop?
a. 0.05 b. 0.10 c. 0.33 d. 3.0
The financing of a government deficit increases interest rates and, as a result, reduces investment spending. This statement describes:
A. the net export effect. B. the crowding-out effect. C. the supply-side effects of fiscal policy. D. built-in stability.
When asset specificity is very low and there is no market uncertainty, it is best for a firm to:
A. buy in the open market. B. vertically integrate. C. use a long-term contract. D. engage in a joint venture.