HydroGrow is considering building a new greenhouse in which to grow tomatoes. The board meets and decides that this is the right thing to do. Before they can put their plans into action, the interest rate increases. The present value of the returns from this investment project
a. is now lower than it was before, and so Hydro Grow is less likely to build the building.
b. is now lower than it was before, and so HydroGrow is more likely to build the building.
c. is now higher than it was before, and so HydroGrow is less likely to build the building.
d. is now higher than it was before, and so HydroGrow is more likely to build the building.
a
You might also like to view...
While Keynesians and supply-siders agree that stabilization policy can affect levels of unemployment and inflation, they disagree over
a. how much taxes should be cut b. how much government spending should be increased c. how monetary policy should be used d. how consumers spend their tax reductions e. whether aggregate demand or aggregate supply is the critical variable
Critics of the Fed argue that after the 2001 recession, it used a policy that was ______.
a. too tight for too short b. too tight for too long c. too loose for too short d. too loose for too long
Brazil, Russia, and Thailand are referred to as:
A. Industrially advanced countries B. Middle-income developing countries C. Low-income developing countries D. Command economies
The income of consumers increases. and the wage rate in the DVD industry increases. As a result
A) the price of DVDs stays the same and the quantity sold can either increase or decrease, depending on whether the change in demand is greater than the change in supply. B) the price of DVDs increases and the quantity sold can either increase, decrease or stay the same depending on whether the change in demand was greater than the change in supply. C) the equilibrium quantity sold increases and price can either increase or decrease, depending on whether the change in demand is greater than the change in supply. D) the equilibrium quantity sold can either increase or decrease and the price can either increase or decrease, depending on whether the change in demand was greater than the change in supply.