Assume that the distance between the two lines at Y1 equals the distance between the two lines at Y2. Which of the following must be true?
a. The amount businesses at Y1 need to produce to reach equilibrium equals the amount businesses at Y2 need to cut back on production to reach equilibrium.
b. The amount businesses at Y1 need to produce to reach equilibrium equals the amount businesses at Y2 currently maintain in inventory.
c. The amount of unplanned inventory investment businesses have made at Y1 equals the amount of planned inventory investment businesses have made at Y2.
d. The amount of planned inventory investment businesses at Y1 have made equals the amount of unplanned inventory investment businesses at Y2 have made.
a. The amount businesses at Y1 need to produce to reach equilibrium equals the amount businesses
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A $130,000 investment in new equipment this year will increase your firm's profits by $50,000 in each of the next 3 years. What is the net present value of this investment if your firm's opportunity cost of capital is 10 percent?
A) -5,657 B) 5,657 C) 124,343 D) 128,850
If a firm is earning zero economic profit, then its accounting profit will:
A. decrease in the long run. B. increase in the long run. C. be positive. D. be negative.
An example of share distribution of income is how much:
A. two-parent households get relative to single-parent households. B. Black people get relative to white people. C. the top 10 percent of a population gets. D. the young get relative to the old.
Institutions that channel funds from people who have them to people who want them are called:
A. governmental agency. B. financial intermediaries. C. corporations. D. the Federal Reserve.