The deflation of the 1930s impacted the U.S. economy because it led some consumers to ________ and because it ________
A) demand higher wages in anticipation of prices eventually rising again; increased manufacturing since firms could afford to hire more labor
B) increase purchases to take advantage of the falling prices; increased the burden on lenders
C) postpone purchases while they waited for prices to fall even lower; increased the burden on borrowers
D) borrow more money since money was now cheap; reduced the amount of money consumers would have to pay back on their outstanding loans
C
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The above figure shows the production possibility frontier for a country. Suppose the country is producing at point E. What would be the opportunity cost to increase the production of wine to 9 thousand bottles?
A) 12 tons of rice B) 15 thousand bottles of wine C) 9 thousand bottles of wine D) 3 tons of rice E) Nothing, it is a free lunch.
When Ferrari sells stock to the public in its IPO, it will do so through the New York Stock Exchange. This is an example of Ferrari using ________ to raise funds
A) corporate governance B) bonds C) direct finance D) indirect finance