The quantity of loanable funds available to a corporation depends on the
A. Price of its stock.
B. Interest rate the company is willing to offer.
C. Present worth of the company's dividends.
D. Dividends the company is willing to pay.
Answer: B
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An article on how prices in South Bend, Indiana rise during Notre Dame home football games noted: "For the Sept. 16 game against the University of Michigan, the South Bend Marriott is charging $649 a night for a double room
The Marriott's regular weekend price is $149 a night." Which of the following statements is true? A) The Marriott has adopted this pricing strategy to capitalize on arbitrage profits. B) There is no evidence of price discrimination; the Marriott is responding to increased demand for hotel rooms in the face of constant supply. C) The Marriott is practicing first-degree price discrimination by charging what the market will bear. D) This is evidence of third-degree price discrimination because hotel accommodation on a particular day is not a product that can be resold later.
The nominal interest rate: a. varies directly with the rate of expected inflation in an economy
b. is the interest rate expressed in dollars of constant purchasing power. c. equals the difference between the real interest rate and the inflation rate. d. is the basis for decisions taken by the lenders and the borrowers in an economy. e. is the percentage increase in the average price level from one year to the next.