If an increase in income leads to in an increase in the demand for peanut butter, then peanut butter is

In the aggregate expenditures model, if an economy operates below equilibrium GDP, there will be unplanned inventory accumulation

a. True b. False Indicate whether the statement is true or false

Suppose a firm is considering the purchase of a machine which when used will increase its total revenues by $10,000 for the year. The machine costs $8,000 and has a useful life of one year. The interest rate is 20 percent. This investment should:

A. Be undertaken because the rate of return is 2 percent greater than the interest rate B. Be undertaken because the rate of return is 5 percent greater than the interest rate C. Be undertaken because the rate of return is 7 percent greater than the interest rate D. Not be undertaken because the rate of return is 7 percent less than the interest rate