Irving owns a chain of movie theaters. He is considering whether he should build a new theater downtown. The expected rate of return is 15 percent per year. He can borrow money at a 12 percent interest rate to finance the project. Should Irving proceed with this project?

Refer to Figure 17-2. The nonaccelerating inflation rate of unemployment, or NAIRU, is associated with which point rate in the figure above?

A) A B) B C) C D) all of the above

A firm is generally more interested in marginal profits than in total profits.

Answer the following statement true (T) or false (F)