Assume That a Firm Has $100 Million in Real Assets

question 20

Multiple Choice

Assume that a firm has $100 million in real assets and $90 in real liabilities.If the price level rise by ten percent,the real value of its assets would ________.

• A)fall
• B)rise
• C)change,but more information must be provided to determine their exact movement
• D)remain unchanged

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Definitions:

Research Hypotheses

Statements made by researchers that propose a potential relationship between two or more variables.

Research Hypothesis

A specific, testable prediction about what you expect to happen in your study, often based on a theory or prior research.

Modality

The method or mode in which something exists or is experienced or expressed.

Interval Scale

A numerical scale where the order of values and the exact differences between them are known, but there is no true zero point.