What effect do low interest rates have on business investment?

(A) They encourage it.
(B) They slow it down.
(C) They generally stop it completely.
(D) They do not have much effect on essential investment.

Ans: (B) They slow it down.

Economics

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Cartels rarely succeed for long because they find it difficult to

A) avoid losing the advantages from economics of scale. B) keep marginal costs high and marginal revenue low. C) keep members from offering discounts and new firms from entering. D) keep members from reducing output below the optimal level. E) prevent average cost from falling below marginal cost.

Economics

In the above figure, if the natural monopoly is not regulated then consumer surplus is

A) $48 million. B) $60 million. C) $108 million. D) $192 million.

Economics