La Rossa Pasta Company is considering expanding its factory. In which case would both the change in the cost and the change in the interest rate each make it less likely that La Rossa's would expand?
a. a decrease in the cost of expanding and a decrease in the interest rate.
b. a decrease in the cost of expanding and an increase in the interest rate.
c. an increase in the cost of expanding and a decrease in the interest rate.
d. an increase in the cost of expanding and an increase in the interest rate.
d
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The discount rate refers to the interest rate on
A) primary credit. B) secondary credit. C) seasonal credit. D) federal funds.
If Chinese consumers want to buy US goods, they will
a. Buy Yuan and sell US Dollars b. Sell Yuan and buy US Dollars c. Neither buy nor sell Yuan d. Neither buy nor sell dollars
Suppose you have put $5,000 into a project that should generate cash inflows of $1,250 for each of the next 5 years. If the interest rate is 8% is this a good investment?
A. Yes, because you will earn a profit of $1,250 dollars in 5 years B. Yes, because the internal rate of return is higher than the interest rate C. No, because the internal rate of return is higher than the interest rate D. No, because the net present value is negative
Assume the market for orange juice is perfectly competitive. Orange juice producers currently earn a zero economic profit. Orange juice producers will likely begin to earn economic profits in the short run, and some producers will enter the industry until all firms in the industry earn a zero economic profit, if consumers
A. do not change their demand for orange juice. B. switch from grape juice to orange juice. C. switch from orange juice to grape juice. D. All of the above are correct.