The Issuance of New Debt in Payment of Previously Issued

question 72

True/False

The issuance of new debt in payment of previously issued debt is called refinancing.
Refinancing is the issuance of new debt in payment of debt issued earlier.

---

Definitions:

Production Function

An equation that specifies the output of a firm, an industry, or an entire economy for all combinations of inputs.

Input

Resources used in the production process to create goods or services, including labor, materials, and capital.

Returns To Scale

An economic concept describing how the increase in inputs affects the level of output of a production process.

Production Function

A mathematical equation that describes the relationship between inputs and the maximum output that can be produced with those inputs.