In Figure 4-4 above, if the interest rate falls from 10% to 7.5% and this causes businesses to become more optimistic about future investment conditions, we would observe that planned investment would

A) decrease from B to C to D.
B) increase from B to C to D.
C) increase from B to C to F.
D) decrease from B to C to F.

C

Economics

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The sacrifices made by societies in order to engage in military spending represent

A) the real costs of military spending. B) the excessive costs of military spending. C) the nominal costs of military spending. D) the opportunity costs of military spending.

Economics

Assume an industry is comprised of three firms—A, B, and C. Firm A controls 50 percent of the market, Firm B controls 30 percent, and Firm C controls 20 percent. What is the value of the Herfindahl Index?

a. 100 b. 200 c. 2,600 d. 3,800

Economics