The weighted average of a firm's expected return on its stock and the interest rate that it pays for debt is known as the:

A) internal rate of return.
B) opportunity cost of capital.
C) risk-free rate of return.
D) company cost of capital.

D

Economics

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In the above figure, starting at E3, if there is an increase in technology that causes a permanent increase in production capabilities

A) aggregate supply would shift to SRAS0 and LRAS1 would shift to LRAS0. B) aggregate supply would shift to SRAS2 and LRAS0 would shift to LRAS1. C) aggregate supply would shift to SRAS1 and LRAS0 would shift to LRAS1. D) aggregate supply would shift to SRAS1 and then return to SRAS0.

Economics

To combat inflation, Congress and the president should

A) increase transfer payments. B) decrease taxes. C) decrease government spending. D) raise interest rates.

Economics