A firm will invest in a project if
A) the interest rate exceeds the opportunity cost of the project.
B) the firm's level of capital is at the desired level.
C) the firm's level of capital is higher than the desired level.
D) the rate of return of the project is greater than the opportunity cost of the investment.
D
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Indicate whether the statement is true or false
In the short run, the intersection of the aggregate demand and the short-run aggregate supply curves,
A) determines the equilibrium price level. B) is a point where there is neither a surplus nor a shortage of goods. C) determines the equilibrium level of real GDP. D) All of the above answers are correct.
If Treasury deposits at the Fed are predicted to fall, the manager of the trading desk at the New York Fed bank will likely conduct ________ open market operations to ________ reserves
A) defensive; inject B) defensive; drain C) dynamic; inject D) dynamic; drain
Scatterbrain Samantha often forgets to lock her house. This has caused the probability of a burglary to be 30%. If her house gets broken into, she faces a property loss of $10,000, otherwise she gets to keep her $100,000 . If Samantha is offered an insurance policy for her house to protect her from loss at $3,000, would she buy the insurance?
a. Yes because she gets to now enjoy her wealth risk-free b. No, because she can take the risk and be better off c. Yes, because she is a risk lover d. None of the above