Credit risk reflects:
a. A company's expected performance, level of solvency, and potential inability to service its debts.
b. A company's ability to get "credit for its performance" in the stock market, which means having its share price rise at the same rate or faster than profitability.
c. The variability of cash flows for the national government.
d. All of the above.
.A
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The marginal cost of a monopolist is constant and is $10. The demand curve and marginal revenue curves are given as follows:
demand: Q = 100 - P marginal revenue: MR = 100 - 2Q The deadweight loss from monopoly power is ________. A) $1000.00 B) $1012.50 C) $1025.00 D) $1037.50 E) none of the above
As an individual consumes more of a given good or service, the marginal utility of that good to the consumer likely: a. increases
b. remains constant. c. falls. d. falls and then rises.
You originally required a risk premium of 6 percent in addition to the rate of return on safe assets before you would purchase shares of Techno Company stock. If you and other investors reduce the risk premium you require to 4 percent, the price of Techno Company stock will:
A. decrease. B. equal the new risk premium plus the rate of return on safe assets. C. increase. D. equal the old risk premium plus the new risk premium.
The primary cause of the reduction in the nominal money supply during the early years of the Great Depression was
A) the Fed's sale of bonds. B) the Fed's purchase of bonds. C) a reduction in the money multiplier. D) none of the above