Which One of the Following Statements Is Correct

question 68

Multiple Choice

Which one of the following statements is correct?

• A)Seasonal needs are financed externally when firms adhere to a flexible financing policy.
• B)A flexible financing policy tends to increase the risk of encountering financial distress.
• C)Long-term interest rates tend to be less volatile than short-term rates.
• D)Most firms tend to finance inventory with long-term debt.
• E)Short-term interest rates are generally higher than long-term rates.

Distinguish between nominal and real GDP and explain the implications of each for measuring economic activity.

Explain the difference between GDP and Gross National Product (GNP).

Identify what expenditures are included and excluded in GDP calculations.

Calculate GDP using different approaches and understand the concept of net exports.

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Definitions:

Inherently Good

A philosophical and ethical stance suggesting that human beings are born with an innate tendency towards goodness.

Innately Evil

The philosophical and psychological concept suggesting that humans are born with an inherent tendency towards malevolence and wrongdoing.

Psychoanalytic Theories

A set of theories originated by Sigmund Freud that emphasize unconscious processes and childhood experiences in shaping behavior and personality.

Stage Theories

Theoretical models that describe human development as occurring in distinct phases or stages with specific characteristics.