Refer to the information provided in Table 23.6 below to answer the question(s) that follow.
Table 23.6A Hypothetical Investment Schedule
Refer to Table 23.6. If the interest rate dropped from 15% to 6%, planned investment would ________ by $________ billion.
A. decrease; 90
B. increase; 270
C. decrease; 270
D. increase; 90
Answer: D
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The opportunity cost of using one’s own savings in operating a business can be determined by using
a. wage rates. b. interest rates. c. exchange rates. d. rental rates.
Refer to Figure 15-16. Suppose the government regulates this industry in order to remove the inefficiency implied by the behavior of the profit-maximizing owners
If regulators require that the firm produces the economically efficient output level, what is this level and what price will be charged? A) Q3 units; P3 B) Q1 units; P1 C) Q1 units; P4 D) Q4 units; P6
Suppose technical change makes it cheaper for cable television suppliers to supply their service. The capture theory would predict that the regulators would
A) allow the firms to capture the savings and would lower price only if the firms asked them to. B) force the firms to pass the savings on to consumers in the form of lower prices. C) force the firms to pass the savings on to consumers in the form of better service. D) force the firms to pass some of the savings on to consumers and permit them to keep some of the savings for themselves.
Figure 2-7
Which of the following could explain the shift in the production possibilities frontier shown in from AC to AB?
a.
technical improvements in both petroleum and clothing production
b.
a productive improvement in clothing production that has no effect on petroleum production
c.
a decrease in the size of the labor force that can produce either petroleum products or clothing
d.
major oil reserves in Alaska are declared off-limits to producers in order to protect the environment
e.
major oil reserves are discovered off the coast of Africa