How Can a Firm Create Excess Capacity

question 49

Multiple Choice

How can a firm create excess capacity?

• A)A firm can arrange a line of credit.
• B)A firm can borrow more than it currently needs.
• C)A firm can sell assets that it does not currently need.
• D)A firm can enter a new market in a foreign country.

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Definitions:

Commercial Banks

Financial institutions that offer a wide range of services, including deposits, loans, and other financial products to businesses and individuals.

Incomes

Regular financial earnings obtained from labor services or investment gains.

U.S. Currency

The official monetary system of the United States, consisting of the dollar and its denominations.

M3

A measure of the total amount of money in circulation within an economy, including cash, deposits, and short-term securities.