Which of the following is NOT a reason why an increase in the interest rate usually makes investment projects less attractive?
A. At a higher rate, future dollars are worth less compared to current dollars.
B. A typical investment project incurs the majority of its costs early in its life.
C. A typical investment project receives a disproportionate fraction of its revenue early in its life.
D. At a higher rate, putting money into the bank is more attractive.
C. A typical investment project receives a disproportionate fraction of its revenue early in its life.
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What is measured on the horizontal axis when we draw a graph of the long-run aggregate supply curve?
A) production of consumer goods B) real GDP C) production of capital goods D) the price level
Extractive economic institutions are:
A) likely to prevent entrepreneurs with new ideas from entering into the right line of business. B) likely to encourage entrepreneurs with new ideas from entering into the right line of business. C) found only in market economies. D) found only in command economies.
If the U.S. government runs a budget deficit (G ? T), that deficit must be financed by an excess of
a. T over G. b. C over T plus G. c. investment by American businesses and individuals. d. S over I by American businesses and individuals, or by borrowing from foreigners.
Suppose the accompanying table describes the relationship between price and quantity demanded for a monopolist. QuantityPrice1$102$93$84$75$66$57$48$3If the marginal cost of producing each unit of output is $5, then this monopolist maximizes its profit by charging ________ per unit.
A. $5 B. $6 C. $8 D. $3