Which of the following events could explain a decrease in interest rates together with an increase in investment?
a. The government went from surplus to deficit.
b. The government instituted an investment tax credit.
c. The government reduced the tax rate on savings.
d. None of the above is correct.
c
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Which of the following is correct?
a. NCO = NX b. NCO + I = NX c. NX + NCO = Y d. Y = NCO - I
Exhibit 8-4 Marginal cost and revenue for a firm UnitQuantity Marginal Cost Marginal Revenue 12 $ 5 $9 13 6 9 14 7 9 15 8 9 16 9 9 17 10 9 In Exhibit 8-4, what is this firm's profit-maximizing rate of output?
A. 13. B. 14. C. 15. D. 16.
Which of the following explains why a firm would be interested in knowing the price elasticity of demand for a good it sells?
A) The price elasticity of demand can be used to determine the impact of changes in income on quantity sold. B) Knowing the price elasticity of demand allows the firm to determine how the cost of producing additional units of the good will change. C) Knowing the price elasticity of demand allows the firm to calculate how changes in the price of the good will affect the firm's total profit. D) The price elasticity of demand allows the firm to calculate how changes in the price of the good will affect the firm's total revenue.
The case against advertising includes the fact that
A. firms spend large sums of money to create artificial differences among products. B. it increases competition by decreasing barriers to entry of new firms into an industry. C. it provides consumers with valuable information about product availability, quality, and price. D. it ensures high quality and efficient production.