Investment decisions are based on the trade-off between the:
A. potential profit that could be generated and the willingness of a lender to make the loan.
B. future value of the loan and the present value of the loan.
C. interest rate that savers will earn and the interest rate that the borrowers will have to pay.
D. potential profit that could be generated by investment and the cost of borrowing money to finance the investment.
Answer: D
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Refer to the scenario above. If the number of participants in the auction increases to 20, Rebecca should place a bid of ________
A) $45,000 B) $42,750 C) $4,500 D) $40,500
Refer to above Table 2-2. The geometric average of the increase in real GDP between year 1 and year 2 is
A) 3.1%. B) 3.2%. C) 3.3%. D) 3.8%.
If a monopoly's Lerner Index exceeds 1, then
A) it is earning maximum profit. B) it has ultimate market power. C) it must be pricing below marginal cost. D) marginal revenue is negative.
A completely successful emission fee:
A.) Results in zero pollution. B.) Shifts the private MC curve to the same position as the social MC curve. C.) Shifts the social MC curve to the same position as the private MC curve. D.) Does not affect the private or social MC curve.