As shown in Figure 7-4, for income to be unchanged when there is an autonomous decline in investment, the interest rate would have to
a. rise to r0.
b. fall to r2.
c. remain constant at r1.
d. None of the above
B
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If you place $100 in a bank account that pays 6% at the end of each year, and you leave your $100 and all your interest in the bank, how much will you have in the bank at the end of seven years with annual compounding?
A) (106)7. B) 7 ? (106). C) 100 ? (1.60)7. D) 100 ? (1.06)7.
The primary purpose of a conglomerate merger is
a. to achieve economies of scale available through increased production of a single good. b. to allow for decentralized management by spreading authority of a number of people spread throughout company locations. c. to avoid adverse effects of business cycles through diversification. d. to reduce competition by purchasing and then closing competing firms.
Explain how and why economic events in the United States affected the economies of Thailand, South Korea, and Indonesia and vice-versa.
What will be an ideal response?
When marginal product is rising
A) total product is falling. B) marginal cost is falling. C) marginal cost is rising. D) average fixed cost is rising.