Multiple Choice
If a firm finances a new project using its own funds,
A) the cost is minimal
B) the opportunity cost of borrowing has been avoided
C) investment funds will be in excess supply
D) the financing charges are the measure of the real interest rate
E) the interest rate represents the firm's opportunity cost
Correct Answer:
Verified
Correct Answer:
Verified
Q1: When the feedback effects from income to
Q2: Equilibrium in the money market means that
Q4: Open market sales of bonds by the
Q5: An excess demand for money exists if
Q6: Suppose that the equilibrium interest rate is
Q7: An increase in government purchases,an increase in
Q8: When considering the demand for money,which two
Q9: If the Fed wishes to increase the
Q10: If the interest rate dropped,what would be
Q11: What will be the effects of a