When the government goes from running a balanced budget to running a budget surplus:

a. national saving decreases, the interest rate rises, and the economy's long-run growth rate is likely to decrease.
b. national saving increases, the interest rate falls, and the economy's long-run growth rate is likely to decrease.
c. national saving decreases, the interest rate rises, and the economy's long-run growth rate is likely to increase.
d. national saving increases, the interest rate falls, and the economy's long-run growth rate is likely to increase.

When an interest-bearing note comes due and is uncollectible, the journal entry includes debiting

Burke enterprises is considering a machine costing $30 billion that will result in initial after-tax cash savings of $3.7 billion at the end of the first year, and these savings will grow at a rate of 2 percent per year for 11 years. after 11 years, the company can sell the parts for $5 billion. burke has a target debt/equity ratio of 1.2, a beta of 1.79. you estimate that the return on the market is 7.5% and t-bills are currently yielding 2.5%. burke has two issuances of bonds outstanding. the first has 200,000 bonds trading at 98% of par, with coupons of 5%, face of $1000, and maturity of 5 years. the second has 500,000 bonds trading at par, with coupons of 7.5%, face of $1000, and maturity of 12 years. kate, the ceo, usually applies an adjustment factor to the discount rate of +2 for such highly innovative projects. should the company take on the project?

Diamond motor car company produces some of the most luxurious and expensive cars in the world. typically, only a single dealership is authorized to sell its cars in certain major cities. in less populous areas, diamond authorizes a single dealer for an entire state or region. the manufacturer of diamond automobiles is using a(n) distribution strategy for its product.