A publisher is deciding whether or not to invest in a new printer. The printer would cost $900, and would increase the cash flows in year 1 by $500 and in year 3 by $800 . Cash flows do not change in year 2 . If the interest rate is 12%, what is the present value of the cash flows from the investment?
a. $155.59
b. $1015.85
c. $1076.56
d. $346.78
b
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If technological change increases the profitability of new investments for firms, then the ________ curve for loanable funds will shift to the ________
A) demand; right B) demand; left C) supply; right D) supply; left
If the consumption of a good by one person reduces the amount of it that can be consumed by others, the good is
A. excludable. B. nonexcludable. C. rivalrous in consumption. D. nonrivalrous in consumption.
Compare the composition of U.S. output in the year 1900 with its composition in the year 2000.
What will be an ideal response?
If the full-employment level of real GDP is greater than the equilibrium level of real GDP, the nation would be experiencing a(n)
A. rising prices. B. recessionary gap. C. demand-pull inflation. D. inflationary gap.