The profitability of an investment project will decrease if
A. tax rates decrease.
B. real interest rates increase.
C. real interest rates decrease.
D. business tax deductions increase.
Answer: B
You might also like to view...
Explain the conditions that are met when a consumer has found the best affordable combination of goods to buy. (Use the terms budget line, marginal rate of substitution, and relative price in your explanation.)
What will be an ideal response?
Investment decisions are based on the trade-off between the:
A. potential profit that could be generated by investment and the cost of borrowing money to finance the investment. B. interest rate that savers will earn and the interest rate that the borrowers will have to pay. C. future value of the loan and the present value of the loan. D. potential profit that could be generated and the willingness of a lender to make the loan.
If two series have means that are not trending, a simple regression involving two independent I(1) series will often result in a significant _____ statistic.?
A. ?F B. ?t C. ?z D. ??2
The U.S. fiscal stimulus in 2009 did not increase GDP substantially because
A. the Federal Reserve was decreasing interest rates and real-world estimates for the multiplier might be less than one. B. the Federal Reserve was increasing interest rates and real-world estimates for the multiplier might be less than one. C. state governments were decreasing spending and real-world estimates for the multiplier might be less than one. D. state governments were increasing spending and real-world estimates for the multiplier might be less than one.