Es seguro ! https:// Help Save & Exit Submit n on the basis of the following inf

Question

Es seguro ! https:// Help Save & Exit Submit n on the basis of the following information. Assume that if the interest rate that businesses must pay to borrow funds were 20 percent, t would be unprofitable for businesses to in to increase by $10 billion for each successive 4 percentage point decline in the interest rate Refer to the information. Which of the following is an accurate verbal st vest in new machinery and equipment, so investment would be zero. But if the interest rate were 16 percent, es would find it profitable to invest $10 billion If the interest rate were 12 percent $20 billion would be invested. Assume that total investment continues of the described relationship? 2 There is no reguiar or dependable relationship between business investment and the interest rate

Explanation / Answer

1) ans is B Investment varies inversely with interest rate because on decreasjng interest rate, investment increases.

4) ans is D. PPF dont tell how much society wants to produce but PPF shows all different combination of two goods which an economy can produce with optimal use of given resources and technology.

6)ans is B. Summer evening are nice when it cools off around 70 degree

8)ans is A. If PPf is linear or straight line, it means opportunity cost is constant which is possible only when all fop are perfectly sibstitute or are equally efficient in production of both goods.

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