The profitability of an investment project will increase if
A. tax rates increase.
B. real interest rates increase.
C. real interest rates decrease.
D. business tax deductions decrease.
Answer: C
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Employees at Bank of America are good at providing banking services and workers at Ben & Jerry's are good at making ice cream
If some bankers are moved to making ice cream, we get a small increase in the amount of ice cream produced and a large decrease in the amount of banking services provided. If the PPF has banking services on the vertical axis and ice cream on the horizontal axis, the effect of the change reflects A) decreasing opportunity costs. B) a bowed out PPF for banking services and ice cream. C) production efficiency. D) a shift to a flatter PPF.
Sellers who were originally willing to supply 400 units of a good at $4 per unit are now willing to supply 800 units at $4 per unit. That change would be described as: a. an increase in supply
b. a decrease in supply. c. an increase in quantity supplied. d. a decrease in quantity supplied.