The investment decision is made in the short run.
Answer the following statement true (T) or false (F)
False
An investment decision is the long-run decision to build, buy, or lease plants and equipment, or to enter or exit an industry.
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If the U.S. interest rate differential falls, then the exchange rate
A) does not change. B) definitely falls. C) definitely rises. D) falls only if it was the U.S. interest rate that changed. E) rises only if it was the foreign interest rate that changed.
A banker motivated by profit maximization may make decisions that destabilize the banking system
a. True b. False Indicate whether the statement is true or false
Economic profits are
A. equal to accounting profits plus the implicit costs of the firm. B. whatever remains after all opportunity costs have been taken into account. C. always greater than accounting profits. D. the same as accounting profits when firms do not own capital equipment.
What are the determinants of investment spending?
What will be an ideal response?