As interest rates fall, a firm would
A. be willing to pay more now to purchase the same number of future dollars.
B. be willing to pay less now to purchase the same number of future dollars.
C. have decreasing present value of expected earning.
D. have higher expected costs of investment.
Answer: A
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Which of the following is true for a typical firm in a typical cartel?
a. "I can never do better for myself than by following agreed-upon cartel policies." b. "If everyone cheats, I'm better off, and so is everyone else in the cartel." c. "If I alone cheat, I'm better off; if everyone cheats, I'm worse off." d. "If I suspect others are planning to cheat, I'll do best for myself by refraining from cheating."
Which of the following statements is correct?
A. A shortage and scarcity are the same thing. B. A shortage occurs when the quantity demanded is greater than the quantity supplied at a price below the market clearing price. C. A shortage occurs when the quantity demanded is less than the quantity supplied at a price below the market clearing price. D. A shortage occurs when the quantity demanded is less than the quantity supplied at a price above the market clearing price.
Which of the following models emphasizes the importance of credible, predictable government policies for maintaining full employment with low inflation?
a. The monetarist model. b. The Keynesian model. c. The supply-side model. d. The rational expectations model.
In summary, many of the government's farm programs are an attempt to shift the
a. demand curve for farm goods to the right b. demand curve for farm goods to the left c. supply curve for farm goods to the left d. supply curve for farm goods to the right e. supply and demand curves for farm goods to the right