A firm that retains earnings does the equivalent of
A. borrowing money from the firm's shareholders.
B. decreasing its own net worth.
C. decreasing the net worth of the firm's shareholders.
D. lending money to the firm's shareholders.
Answer: A
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A technological advance ________ potential GDP, ________ aggregate supply, and shifts the aggregate supply curve ________
A) decreases; increases; rightward B) decreases; decreases; leftward C) increases; decreases; leftward D) increases; increases; rightward E) increases; increases; leftward
Which of the following will increase the wage rate?
A) an increase in the adult population B) an increase in the retirement age C) an improvement in technology that increases the marginal product of labor D) Both answers A and B are correct.
If there is an excess supply of Tunisian dinars at a given exchange rate, what will lead the market into an equilibrium?
a. Finding themselves unable to buy all the dinars they want to buy, buyers will accept a lower price. b. Finding themselves unable to buy all the dinars they want to buy, sellers will offer a lower price. c. Finding themselves unable to sell all the dinars they want to sell, sellers accept a higher price. d. Finding themselves unable to buy all the dinars they want to buy, buyers offer a higher price. e. Finding themselves unable to sell all the dinars they want to sell, sellers accept a lower price.
Stock prices can be described as "random walks" if there is no relationship between one day's prices and the following day's prices
a. True b. False Indicate whether the statement is true or false