As interest rates increase,
A. firms will want to borrow more.
B. firms will want to invest more.
C. future revenues become more profitable.
D. future revenue become less profitable.
Answer: D
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The only way governments can finance a deficit is by printing new money
Indicate whether the statement is true or false
Which of the following helps explain low growth rates of many less developed countries?
a. Good law enforcement b. Political stability c. Low population growth rates d. Excellent legal systems e. Near-subsistence levels of per capita output
Price floors are sometimes called price supports because they prevent a price from falling below a certain level
a. True b. False Indicate whether the statement is true or false
Suppose a monopolist is at the profit-maximizing output level. If the monopolist sells another unit of output:
A. both producer surplus and consumer surplus increase. B. both producer surplus and consumer surplus decrease. C. producer surplus rises but consumer surplus falls. D. producer surplus falls but consumer surplus rises.