What are three options a company has when it wants to finance a new project?
What will be an ideal response?
1.It can use its retained earnings, those earnings which have not been paid to owners.
2. It can borrow funds from a bank or sell corporate bonds to the public.
3. It can issue and sell new shares of stock.
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The dollar price of a good relative to the average dollar price of all other goods and services is the good's:
A. nominal price B. equilibrium price C. market price D. real price
Even when the Obama administration succeeds with its effort to gain Congressional approval for its stimulus proposals, it will still take time for these policies to actually work. The time it takes for these policies to work is known as
A) automatic stabilization. B) crowding out. C) inside lags. D) outside lags.
In the simple deposit expansion model, a decline in checkable deposits of $1,000 when the required reserve ratio is equal to 20 percent implies that the Fed
A) sold $200 in government bonds. B) sold $500 in government bonds. C) purchased $200 in government bonds. D) purchased $500 in government bonds.
Last year Christine worked as a consultant. She hired an administrative assistant for $15,000 per year and rented office space (utilities included) for $3,000 per month. Her total revenue for the year was $100,000. If Christine hadn't worked as a consultant, she would have worked at a real estate firm earning $40,000 a year.Last year, Christine's accounting profit was ________ and her economic profit was ________.
A. $49,000; $9,000 B. $9,000; 0 C. $100,000; $64,000 D. $64,000; $49,000