The best time for a business to purchase new equipment is when

A. interest rates are low.
B. consumer demand decreases.
C. job growth declines.
D. the gross domestic product falls.


A. interest rates are low.

Economics

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The part of a commercial bank's reserves that are larger than desired are called

A) additional reserves. B) required reserves. C) excess reserves. D) nonrequired reserves. E) unnecessary reserves.

Economics

The one determinant of the growth of capital per person that can be affected by policy is the

A) depreciation rate. B) saving rate. C) money supply growth. D) rate of technological change.

Economics

Which of the following is NOT an example of a supply shock?

A) a drought in the Midwest B) a decline in natural gas prices following discovery of new fields C) the introduction of a new line of computer-controlled machine tools in manufacturing D) a substantial increase in federal government spending on Medicare

Economics

Comparative advantage is based on

A. capital costs. B. labor costs. C. dollar price. D. opportunity costs.

Economics