PZX Corporation has the opportunity to undertake an investment project that will cost $10,000 today and yield the company $13,310 in 3 years. PZX will forgo the project if the interest rate is higher than 10 percent
a. True
b. False
Indicate whether the statement is true or false
True
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An increase in a retailer's "overhead expenses"
A) compels the retailer to raise prices. B) enables the retailer to raise prices. C) makes it profitable for the retailer to raise prices. D) does not in itself make higher prices necessary, possible, or profitable.
The above figure shows the apartment market in Big City. If a government policy results in a shortage of 1,500 apartments in the Big City rental market, it is most likely that the Housing Authority has imposed
A) a rent ceiling of $1500.00 monthly. B) a rent ceiling of $1000.00 monthly. C) a rent floor of $1500.00 monthly. D) a rent floor of $1000.00 monthly.
Suppose that nominal GDP in 2016 was less than real GDP in 2016. Given this information, we know for certain that
A) real GDP in 2016 was greater than real GDP in the base year. B) the price level in 2016 was less than the price level in the base year. C) real GDP in 2016 was less than real GDP in the base year. D) the price level in 2016 was greater than the price level in the base year.
According to Ricardian Equivalence, a tax cut will not have a material impact on consumption spending since ________
A) households will simply save the monies received from the tax cut B) the value of the tax multiplier is one C) a tax cut must lead to an increase in prices, which leaves the real value of consumption unchanged D) a decrease in taxes will be balanced, under current federal law, by a government spending increase