Ceteris paribus, when market interest rates ________, firms undertake ________ investment projects.
A. decrease; no
B. decrease; less
C. increase; more
D. increase; fewer
Answer: D
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An example of U.S. foreign direct investment would be a:
A. factory in Japan owned by a Canadian citizen. B. factory in Canada owned by a U.S. citizen. C. factory in New Mexico owned by a Japanese citizen. D. All of these are examples of foreign direct investment.
Deposit insurance is:
A. a Federal Reserve Bank regulation that covered deposits by individuals against losses. B. private insurance by depositors to guarantee against a bank run that would affect deposits. C. a regulation that limits how much an individual can deposit at a single bank to avoid bank runs. D. government insurance that promised to reimburse individuals for loss in the value of deposits.
For a perfectly competitive firm
A. price is greater than marginal revenue. B. price is less than marginal revenue. C. price equals marginal revenue. D. there is no relationship between price and marginal revenue.
The indifference curves for left shoes and right shoes would most likely be
A) upward sloping and concave to the origin. B) downward sloping and convex to the origin. C) downward sloping and straight lines. D) L-shaped.