What is the influence of the expected profit and the real interest rate on the amount of investment firms make?
What will be an ideal response?
Firms make a decision about whether to undertake an investment based upon the benefit of the investment, the expected profit, versus the opportunity cost of making the investment, the real interest rate. For any particular investment firms compare the expected profit to the real interest rate. If the expected profit exceeds the real interest rate the firm will undertake the investment. If the expected profit is less than the real interest rate the firm will not undertake the investment.
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The following is a total-product schedule for a resource. Assume that the quantities of other resources the firm employs remain constant.Units of ResourceTotal Product124242354464572If the product the firm produces sells for a constant $2 per unit, the marginal revenue product of the third unit of the resource is
A. $12. B. $18. C. $6. D. $24.
Which of the following groups of workers would be considered part of the short-run supply of court reporters in the Chicago area-labor market?
a. individuals in the Chicago area who are undergoing training as court reporters b. trained court reporters in Indianapolis who are seeking information about relocating to Chicago c. trained court reporters and individuals undergoing training in the Chicago area d. unemployed, trained court reporters who are seeking work in an alternative field in the Chicago area e. trained court reporters working or seeking work as court reporters in the Chicago area
Which of the following statements is most correct?
A. The ECB and FOMC are equally successful at keeping the target rate in range. B. The ECB is more successful at keeping the market rate closer to the target rate than the FOMC until the Fed began paying interest on reserves . C. The FOMC is more successful at keeping the market rate closer to the target rate than the ECB until the Fed began paying interest on reserves. D. The ECB seldom has the market rate close to the target rate.
A tariff is a tax on ____ goods that is designed to ____.
A. exported; protect domestic industries B. exported; hurt foreign industries C. imported; made domestic consumers pay more D. imported; protect domestic industries