The capital markets can be divided into two broad categories:

If Y = $500 billion, autonomous consumption = $400 billion, and the marginal propensity to save = 0.20, then saving will equal

a. –$300 billion b. $300 billion c. $0 d. $80 billion e. –$80 billion

Fix-High, a car service chain, immediately needs to raise $16 million to fund the construction of four new service centers. If Fix-High's owners wish to borrow funds without sharing the ownership of the firm, they should: a. liquefy their assets

b. take out a bank loan. c. issue stocks of their firm. d. wait till they make a profit of $16 million.