A new public offering that significantly shifts the supply curve for a firm's shares will
a. have no impact on the stock's price
b. decrease the stock's price
c. increase the stock's price
d. decrease the value of the firm's previously issued bonds
e. decrease the firm's working capital
B
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M1 does not include cash that is held in ATMs or bank vaults, because ________
A) no one really owns that money B) that money is included in M2 C) that money earns no interest D) the right to access that money is counted already as bank deposits E) none of the above
Use the following statements to answer this question. I. To maximize profit, a firm will advertise more when the advertising elasticity is larger. II. To maximize profit, a firm will advertise more when the price elasticity of demand is smaller
A) Both I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) Both I and II are false.