In a typical domestic lending boom, almost all of the amount borrowed is dedicated toward investments that bring about substantial future gains.

The more profits are reinvested into the firm, the

A) less there is available to distribute to bondholders. B) less there is available to distribute to stockholders. C) more the firm will be able to raise in sales of new issues to stock. D) more bonds the firm will sell in order to pay their required dividends to preferred stockholders.

A good that provides external benefits to society has:

a. too few resources devoted to its production. b. too many resources devoted to its production. c. the optimal resources devoted to its production. d. not provided profits to producers of the good.