A firm should cut back on investing if
A. the MRPK is equal to the price of capital.
B. the MRPK is greater than the price of capital.
C. the MRPK is less than the price of capital.
D. the MRPK is equal to zero.
Answer: C
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A) State Department B) International Trade Commission C) Department of Commerce D) Treasury Department
Which of the following would be considered a developed country?
a. Pakistan b. Hong Kong c. India d. Argentina e. Brazil
Which of the following is an example of active fiscal policy?
A. Income tax revenues rise in an inflationary period. B. Income tax revenues fall in a recession. C. Congress passes a major tax increase in an inflationary period. D. Unemployment benefits increase in a recession.
If a country’s GDP DECREASES, but its debt INCREASES during that year, then the country’s debt to GDP ratio for the year will _______________ in proportion to the magnitude of the changes.
A. decrease because GDP decreased B. decrease C. increase or decrease D. increase