If Table 12.2 represents all the investments available to the economy, the nominal interest rate is 4.5 percent and there is no inflation, what will be the level of investment in the economy?
A) $200 B) $500 C) $600 D) $800
C
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A franchise is
A) a firm that buys and operates a brand name business in a new market. B) a branch of a national company. C) a firm with the legal right to sell a good or service in a particular area. D) a firm with no competitors.
When demand for a firm's product decreases, the firm can take a number of steps to adjust costs and quantities supplied to the market. Some are listed below. Which actions are short run and which are long run? Explain your reasoning
a. Layoff 25 percent of the firm's existing employees. b. Declare bankruptcy and sell all of the firm's plant and equipment. c. Require management personnel to take a significant cut in pay. d. Furlough employees for 3 days each month. e. Move to a smaller production facility.