Which of the following three statements is true: I) The amount of capital equipment a firm wishes to buy depends on the rate of interest; II) The amount of capital equipment a firm wishes to buy depends on the purchase price of capital; III) The amount of capital equipment a firm wishes to buy depends on the rates of technological and physical depreciation.

An externality is the

A. secondary effect on an action B. unintended consequence of an action C. effect of an action on people or things that were not involved in the action D. unknown consequence of an action on people or things who were primary parties in the action

The depreciation of the U.S. dollar relative to the French franc would make a vacation trip to:

A. The United States more expensive for the French B. The United States less expensive for the French C. France less expensive for Americans D. Have no effect on the cost of a vacation