If business firms are more optimistic during the expansion phase of the business cycle, they
A) raise their expected rates of return on projects and investment increases.
B) lower their expected rates of return on projects and investment increases.
C) raise their expected rates of return on projects and investment decreases.
D) lower their prices and increase investment.
A
You might also like to view...
Use the following graphs of production possibilities curves to answer the next question.
Suppose the world economy is composed of just two countries: Italy and Greece. Each can produce steel or chemicals, but at the different levels of economic efficiency shown in the graphs. It can be deduced that
A. Greece has a comparative advantage in chemicals. B. it is more costly in terms of resources to produce steel in Italy. C. Greece has the absolute advantage in both products. D. Italy has a comparative advantage in chemicals.
Checking accounts that pay interest are included in the
A) "other checkable deposits" part of M1. B) "savings deposits" part of M2. C) "demand deposits" part of M1. D) "money market mutual funds deposits" part of M2.
Assume that an individual spends his income on sweaters and shirts. If the price of a sweater increases:
A) the opportunity cost of buying sweaters increases. B) the opportunity cost of buying sweaters decreases. C) the opportunity cost of buying shirts increases. D) There is no change in the opportunity cost of consuming either good.
What is the difference between a public franchise and a public enterprise?
A) Both refer to a service provided directly to consumers through the government, but "public franchise" is a term more commonly used in the United States while "public enterprise" is more commonly used in European countries. B) A public franchise grants a firm the right to be the sole legal provider of a good or service. A public enterprise refers to a service that is provided directly to consumers through the government. C) A public enterprise is owned by the public through its holdings of shares of stock in the enterprise. A public franchise is a firm owned by the government. D) A public enterprise grants a firm the right to be the sole legal provider of a good or service. A public franchise refers to a service that is provided directly to consumers through the government.