If the interest rate rises, a profit-maximizing firm will tend to
a. invest in more projects (such as new plants) with payoffs in the future.
b. invest in fewer projects with payoffs in the future.
c. increase both current output and future output.
d. reduce both current output and future output.
b
Economics
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Explain why the number of substitutes influences the price elasticity of demand
What will be an ideal response?
Economics
When income is $15,000, the amount of income taxes owed is $2,000; when income increases to $20,000, the amount owed increases to $3,000. The average income tax rate when a person earns $15,000 is
A) 75 percent. B) 15 percent. C) 13.3 percent. D) 20 percent.
Economics