An example of an externally generated business cycle is the war-induced theory

If the cost of capital increased to 25%, does the firm invest in the printer?

a. Yes because the NPV>0 b. Yes because the NPV=0 c. Need information on the marginal benefits and costs d. No because the NPV<0

If an economic model includes an assumption that there are only two nations in the world, this would be an example of

a. a critical assumption b. an implicit assumption c. a simplifying assumption d. a concrete assumption e. a detail assumption