Less money means ________ interest rates, which ________ spending
A) lower; stimulates
B) lower; reduces
C) higher; stimulates
D) higher; reduces
D
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XYZ Gadget Company is currently considering which investment projects it should undertake. The following list of projects along with the estimated rate of return of each project is presented to the executive management team:Project A (8.5%)Project B (7%)Project C (6%)Project D (11%)Project E (5.5%)The current interest rate in the loanable funds market is 5%. However, if an increase in government borrowing pushes the interest rate to 7.5%, we would expect the company to discontinue investment plans for all but ________ of its planned projects.
A. two B. three C. four D. one
Neo-Keynesians believe that the inverse relationship between rates of unemployment and rates of inflation is causal
Indicate whether the statement is true or false
University researchers create a positive externality because what they discover in their research labs can easily be learned by others who haven't contributed to the research costs. Suppose that the federal government gives grants to these researchers equal to the their per-unit production externality. What is the relationship between the equilibrium quantity of university research and the
socially optimal quantity of university research produced? a. The equilibrium quantity is greater than the socially optimal quantity. b. They are equal. c. The equilibrium quantity is less than the socially optimal quantity. d. There is not enough information to answer the question.
An example of a good that is nonrival in consumption is:
A. a campsite at Yellowstone National Park. B. a ticket to an Omnimax movie at the Smithsonian. C. the Lincoln Memorial in Washington, D.C. D. All of these are nonrival in consumption.