Investment demand is downward sloping because as the interest rate decreases,
A) each project's internal rate of return decreases.
B) each project's internal rate of return increases.
C) more projects will have an internal rate of return that exceeds the interest rate.
D) more projects will have an internal rate of return that is less than the interest rate.
C
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Andrew has the utility of wealth curve shown in the above figure. He owns an SUV worth $30,000, and that is his only wealth. There is a 10 percent chance that he will have an accident within a year. If he does have an accident, his SUV is worthless
What is Andrew's expected wealth? A) $30,000 B) $27,000 C) $20,000 D) zero
The payment of a dividend by a foreign company to an American stockholder represents
A) a debit in the U.S. capital account. B) a credit in the U.S. current account. C) a credit in the U.S. official reserve account. D) a debit in the U.S. current account.
The tax burden will fall most heavily on sellers of the good when the demand curve
A. is relatively flat, and the supply curve is relatively steep. B. is relatively steep, and the supply curve is relatively flat. C. and the supply curve are both relatively flat. D. and the supply curve are both relatively steep.
The long-run aggregate supply curve assumes that
A. there is no government purchasing of goods and services. B. all factors of production are fully employed. C. the unemployment rate is more than 9 percent. D. only laborers are fully employed.