Final answer:
The truthfulness of the statement about CEOs' opinions on financial slack in debt issuance cannot be assessed without full context. Factors influencing debt issues are multifaceted, and the rise in financial supply generally increases loans and decreases interest rates. The Panic of 1819 eroded faith in the Second Bank of the United States.
Step-by-step explanation:
The statement regarding CEOs indicating that financial slack was the most important factor when deciding how much debt a firm should issue seems incomplete and without context. Without clarifying the survey study or providing the full context, we cannot determine whether this statement is true or false. In financial decision-making, several factors including but not limited to financial slack, cash flow projections, market conditions, interest rates, the firm's current leverage ratio, and strategic goals typically inform decisions regarding the issuance of debt.
Furthermore, discussing how changes in the financial market can affect loan quantity and interest rates, a rise in supply of funds typically leads to an increase in the quantity of loans made and received and could lead to a decline in interest rates. Conversely, a rise in demand could lead to higher interest rates. Last, the Panic of 1819 historically decreased the American people's faith in the Second Bank of the United States, making the initial statement in Exercise 12.1.2 false.