Falling interest rates can
A) raise the cost of buying new homes and fewer new homes will be purchased.
B) lower the cost of buying new homes and fewer new homes will be purchased.
C) raise the cost of borrowing for firms and decrease investment.
D) increase a firm's stock price, which causes firms to issue more stock shares, and thus increases funds for investment.
D
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If there were four firms in an industry each with a 25% market share, what would the Herfindahl-Hirschman Index equal?
a. 2500 b. 1250 c. 1,000 d. 625
The diamond-water paradox occurs because:
A. the price of a product is related to its total utility, not its marginal utility. B. the price of a product is related to its marginal utility, not its total utility. C. water is, in fact, very scarce in certain regions of the world. D. diamonds are more useful than water.