Suppose that there is a positive shock to investment demand: that is, at every interest rate, the desired amount of investment rises. In a closed economy with the national saving fixed, the real interest rate will:

An investment option is profitable if:

A) its net present value is zero. B) its net present value is positive. C) its net present value is negative. D) its present value is negative

A firm that has the ability to control to some degree the price of the product it sells

A) is also able to dictate the quantity purchased. B) faces a perfectly inelastic demand curve. C) is a price maker. D) faces a demand curve that is inelastic throughout the entire range of market demand.