An increase in the cost of capital will

If a company defaults on its bonds,

Assets equal

M‑1 includes savings accounts in commercial banks.​

A decrease in the cost of an investment will increase its net present value.​

Assets equal

​Since M‑2 excludes time deposits, M-2 is a less comprehensive measure of the money supply than M‑1.

A decrease in the cost of an investment will increase its net present value.​

​Since M‑2 excludes time deposits, M-2 is a less comprehensive measure of the money supply than M‑1.

Accounts receivable are adjusted for doubtful accounts (i.e., accounts that may not be paid).​