A firm that can afford to buy capital out of retained earnings without borrowing
a) is indifferent to interest rates
b) invests more as interest rates rise
c) invests less as interest rates rise
d) is indifferent to the marginal product of capital
e) has an increasing marginal product of capital
c) invests less as interest rates rise
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An increase in the equilibrium quantity of good X can be caused by
A) an increase the price of inputs utilized in producing good X. B) an increase in the price of good X. C) a technological improvement in the process of producing good X. D) a reduction in the number of producers of good X.
Based on the quantity equation, if Y = 3,000 . P = 3, and V = 4, then M =
a. $4,000. b. $2,250. c. $250. d. $36,000.
If private investment of $100 is added to the economy, the equilibrium levels of income and consumption will change in which of the following ways?
A) Increase/Decrease B) Increase/Increase C) Increase/No change D) No change/Increase E) No change/No change
When regulators identify with the special interests of the industry they regulate, this behavior conforms with the
A) share-the-gains, share-the-pains hypothesis. B) rate-of-return hypothesis. C) lemon market hypothesis. D) capture hypothesis.