Assuming all else equal, if the real interest rate decreases, it will lead to:
A) a decrease in the quantity of credit demanded by a firm.
B) the credit demand curve of a firm to shift to the right.
C) an increase in the quantity of credit demanded by a firm.
D) the credit demand curve of a firm shifts to the left.
C
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In the late 2000s, the primary source of external funds for corporations was
A) commercial paper. B) loans. C) bonds. D) stocks.
A typical firm in a cartel will hold which of the following attitudes?
A) If everyone cheats, I'm better off, and so is everyone in the cartel. B) If I alone cheat, I'm better off; if everyone cheats, I'm worse off. C) I can never do better for myself than following agreed-upon cartel rules. D) If I suspect others are planning to cheat, I'll do best for myself by deciding not to cheat.