Martha needs to acquire funds in order to expand her bakery. She does not want to give up control of her business, but her credit score is weak due to the recent foreclosure of her house. What should Martha do to acquire these funds?
a) Issue stock to willing investors.
b) Borrow money from her local bank.
c) Issue bonds to willing investors.
d) She should do all of the above.
Ans: c) Issue bonds to willing investors.
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Someone in Germany has just ordered a U.S. car to be exported to Germany. In the U.S. balance of payments, this purchase is a(n)
A) accounting identity. B) special draw. C) surplus item. D) deficit item.
With the exception of during recessions, workers in Canada are eligible for unemployment benefits for about twice as long a period of time as workers in the United States. As a result
A) the average duration of unemployment is longer in the United States than in Canada. B) the unemployment rate in Canada is usually higher than in the United States. C) the opportunity cost of job search in Canada is lower than in the United States. D) frictional unemployment is higher, on average, in the United States than in Canada.