The Golden Parachute is an instrument that aligns shareholder interests with that of management

Which of the following factors is likely to increase the amount of available labor and decrease the real wages of workers?

A) in increase in the supply of capital stock B) a large number of factory closings C) consumers demanding more goods D) a high influx of immigration

A key reason that firms and financial institutions might participate in an interest rate swap is

A) to transfer interest rate risk to parties that are more willing to bear it. B) the low information costs of swaps compared with other derivative contracts. C) the greater liquidity of swaps compared with other derivative contracts. D) the favorable tax implications of swaps compared with other derivative contracts.