When interest rates allocate capital
A) many worthwhile projects fail to get funded and society is worse off.
B) investment projects of firms tend to get funded while valuable social investments funded by the government tend not to get funded.
C) only investment projects are funded for which the expected benefits of the projects equal or exceed the opportunity cost of the projects.
D) there is an under investment in capital and overspending on durable consumer goods.
Answer: C
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In 2014, the price of peanuts was rising, which led peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future. In the current market for peanut butter, the price rises and the quantity increases
This set of results means that A) demand increased by more than supply decreased. B) supply decreased by more than demand increased. C) demand increased by more than supply increased. D) supply decreased by more than demand decreased.
The Smoot-Hawley Tariff Act of 1930, like any tariff act, increased the price of the taxed imported goods as well as the domestic price of U.S. goods and services produced in the industries favored by the tariff
Consequently, any tariff negatively impacts U.S. consumers by forcing them to pay higher prices. Indicate whether the statement is true or false