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Separation of ownership or stockholders by control (management) into modern giant corporations tends to divide the economic functions of: (w) capitalists. (x) union leaders. (y) entrepreneurship. (z)
Joseph A. Schumpeter popularized and refined the concept that profits: (i) ultimately derive primarily from innovation. (ii) are necessary compensation to entrepreneurs for bearing uncertainty. (iii)
Profits are: (i) rewards for innovating and enduring uncertainty. (ii) economic, not normal, under pure competition. (iii) reduced through monopolistic business practices or structure. (iv) payments f
Economic profits are: (1) signals which, for efficiency, more resources must be moved into an industry. (2) rewards to successful innovators. (3) capitalized as wealth when they can be expected over t
If estimating the nature of a probability function for an event entails considerable guesswork since experience along with the event is more sporadic or rare which any estimates are extremely speculat
Market interest rates are least associated to the: (1) willingness of people to defer consumption (to save) when they are rewarded for doing so. (2) relative liquidities of alternative financial asset
The proportion you would lose when you bought an asset and instantly sold it is a negatively-related measure of the assets: (1) net present value. (2) liquidity. (3) par value. (4) abandonment cost. (
An increase in the supply of bonds tends to: (1) reduce the interest rate. (2) occur simultaneously with an increase in the demand for loanable funds. (3) yield an increase gross investment but a decr
An increase in the demand for loanable funds is reflected within an increase in the: (1) term structure of interest rates. (2) demand for money. (3) supply of bonds. (4) supply of money. (5) demand fo
When you can buy a bond today for $1,000 and this will mature at $1,210 two years from currently, the rate of return on this financial investment is: (1) 10%. (2) 10.5%. (3) 11%. (4) 12%. (5) 21%. Ca
Assets turn into less desirable to prospective financial investors while: (w) they become more liquid. (x) interest rates increase. (y) their prices go up. (z) default risks decrease. How can I solve
When the price of a share of corporate stock increases, all else identical, there will be reduces in the: (w) overall liquidity of a portfolio which includes the stock. (x) likelihood that the i
Lower bond prices arise simultaneously while there are increases into: (1) optimism among investors in economic capital. (2) government budget surpluses. (3) the rates of saving by households. (4) the
The rate of return on financial assets tends to be negatively associated to: (w) probability of default. (x) liquidity. (y) risk. (z) time to maturity. Please guys help to solve this problem of Econo
When the rate of return on investment equals the interest rate, in that case investment will: (w) rise. (x) fall. (y) not change. (z) Any of the above is possible. Hey friends please give your opinio
When households become more willing to hold less liquid assets, in that case the: (w) interest rate rises. (x) present value of future income falls. (y) interest rate falls. (z) stock market will cras
Business firms least commonly finance investment within new economic capital by: (w) retained earnings. (x) the issuance of common or preferred stocks. (y) borrowing from banks or other financial inst
Investments require: (w) current outlays, and yield current returns. (x) current outlays, and yield future returns. (y) future outlays, and yield current returns. (z) future outlays, and yield future
The interest rate will most likely rise when: (1) households decide to delay consumption, causing the loanable funds accessible for business investments to raise. (2) investors become more optimistic
The interest rate will probably fall when households decide to: (w) consume more currently, shrinking the loanable funds obtainable for business investments. (x) buy new homes in place of restoring th
The supply of loanable funds changes positively along with the: (w) willingness of people to defer consumption in the future. (x) profitability and productivity of new capital investments. (y) price o
Higher real interest rates give in: (w) greater incentives to save and decreased incentives to invest. (x) increases in the amount of liquidity desired by financial investors. (y) increases in the opt
When new medical technology raised the average expected lifespan through 10 years and people responded along with increases in their desires to have hefty “nest eggs” while they retire, it
When households become more willing to hold less cash and more stocks or bonds, in that case the: (1) level of Aggregate Demand increases. (2) present value of future income falls. (3) interest rate f
When households’ start increasingly to prefer current consumption over future consumption, in that case the: (w) interest rate rises. (x) interest rate falls. (y) present value of future income