Suppose that along the economy-wide rate-of-return line, the current interest rate of 8 percent causes planned investment of $300 billion
The $250-billionth dollar of investment spending has a rate of return ________ 8 percent and thus a ________ profit rate. A) below, positive
B) below, negative
C) above, positive
D) above, negative
C
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If managers do not choose to maximize profit, but pursue some other goal such as revenue maximization or growth,
A) they are more likely to become takeover targets of profit-maximizing firms. B) they are less likely to be replaced by stockholders. C) they are less likely to be replaced by the board of directors. D) they are more likely to have higher profit than if they had pursued that policy explicitly. E) their companies are more likely to survive in the long run.
According to the textbook, proponents of minimum wage laws assume that
A. the supply curve for unskilled workers is downward sloping. B. the demand curve for unskilled workers is nearly horizontal. C. the supply curve for unskilled workers is upward sloping. D. the demand curve for unskilled workers is nearly vertical.
The World Bank will primarily make
A. long-term in nature for investment projects which might not receive private financial support. B. short-term loans for investment projects which might not receive private financial support. C. long-term loans for investment projects that are relatively risky. D. short-term loans for investment projects that are relatively safe.
Refer to the information. The $40 billion deposit of new currency will support total checkable deposits of:
Answer the question on the basis of the following information about a banking system: new currency deposited in the system = $40 billion; legal reserve ratio = 0.20; excess reserves prior to the currency deposit = $0. A. $160 billion. B. $200 billion. C. $40 billion. D. $128 billion.