Holding Everything Else Constant, an Increase in Cash ________ a Firm's

question 50

Multiple Choice

Holding everything else constant, an increase in cash ________ a firm's net debt.

• A) will decrease
• B) will have no impact on
• C) will increase
• D) may increase or decrease

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Definitions:

Self-Serving Bias

Self-serving bias is a cognitive bias that leads individuals to attribute their successes to internal characteristics and failures to external factors.

Downward Comparison

The act of comparing oneself to others who are worse off in order to feel better about one's own situation.

Upward Comparison

Comparing oneself to others who are better off or more successful, which can influence self-esteem and motivation.

Temporal Comparison

The process of comparing one's past self to their current self to assess changes over time.