In the figure above, the factor responsible for the decline in the interest rate is
A) a decline the price level.
B) a decline in income.
C) an increase in the money supply.
D) a decline in the expected inflation rate.
C
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Which of the following did NOT contribute to "internal economies" in the industrialization process?
(a) Diminishing returns to scale (b) Central power sources (c) Managerial improvements (d) Transportation networks
A firm has to choose between projects X and Y. Project X's internal rate of return is positive. If the cash flow of project Y is discounted at project X's internal rate of return, this firm will
A) choose project X if the net present value of project Y is positive. B) choose project X if the net present value of project Y is negative. C) choose project Y if the net present value of project Y is positive. D) choose project X regardless of the net present value of project Y.
Transfer payments ___ counted in GDP. Also, they ___ a payment for a good or service the government received.
A. are, are B. are, are not C. are not, are D. are not, are not
Explain why a firm may rationally make an investment when its cash flow from the investment is not positive each year
What will be an ideal response?