Businesses demand funds because
A. they prefer earlier consumption to later consumption.
B. they prefer to purchase capital goods in the current year.
C. they make investments that they believe will increase productivity and profitability.
D. they have deficits to cover.
Answer: C
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The graph below represents the market for alfalfa. The market price is $7.00 per bushel. Identify the areas representing consumer surplus, producer surplus, and economic surplus
What will be an ideal response?
The European System of Central Banks signals the stance of its monetary policy by setting a target for the
A) federal funds rate. B) overnight cash rate. C) lombard rate. D) reserve rate.
The nation of Aviana soon will abandon its no-trade policy and adopt a free-trade policy. If the world price of goose meat is $3 per pound and the domestic price of goose meat without trade is $2 per pound, then Aviana should export goose meat
a. True b. False Indicate whether the statement is true or false
Given the information in Scenario 4.3, it would be correct to say that demand is:
A) infinitely elastic. B) elastic, but not infinitely elastic. C) unit elastic (Ep = -1). D) inelastic, but not completely inelastic. E) completely inelastic.