Capital rationing refers to
A) setting a minimum acceptable rate of return for a capital outlay.
B) selecting among profitable capital outlays when there are constraints on the funds available.
C) determining the maximum price to pay for a capital product.
D) None of the above
B
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The inauguration of a new President often increases the degree of optimism in business firms and households, causing Ap to
A) rise and IS to shift leftward. B) fall and IS to shift leftward. C) fall and IS to increase. D) rise and IS to shift rightward.
How does the cross elasticity of demand differ from the price elasticity of demand? How are they related?
What will be an ideal response?
An example of a fungible commodity is:
A. oil. B. gold. C. aluminum. D. All of these are fungible commodities.
If a country engaged in free trade has an unlimited quantity of imports of a good available at a fixed price, the supply curve for that good is
a. upward sloping. b. perfectly inelastic. c. downward sloping. d. perfectly elastic.