Skyline Chili wants to finance the purchase of new equipment for its restaurants. The firm has limited internal funds, so Skyline likely will
a. demand funds from the financial system by buying bonds.
b. demand funds from the financial system by selling bonds.
c. supply funds to the financial system by buying bonds.
d. supply funds to the financial system by selling bonds.
b
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If planned investment is greater than actual investment, then aggregate expenditure is less than GDP
Indicate whether the statement is true or false
A horizontal aggregate supply curve reflects the assumption that the
A) price level is constant. B) velocity of money is constant. C) saving rate is equal to zero. D) economy is at full employment.
When the price of a good changes, the total effect of the price change on the quantities purchased can be found by comparing the quantities purchased
A) on the old budget line and the new budget line. B) on the original indifference curve when faced with the original prices and when faced with the new prices. C) on the new budget line and a hypothetical budget line that is a parallel shift back to the original indifference curve. D) on the new indifference curve.
In finance, the leverage ratio refers to:
A. how a firm decides to borrow funds that it doesn’t have. B. using borrowed money to pay for investments. C. ratio of assets it has relative to its equity. D. ratio of assets it has relative to debt.