A reduction in the rate of depreciation will cause the discounted present value of expected profits to
A) decrease.
B) increase.
C) remain unchanged if the real interest rate increases by the same amount.
D) none of the above
B
Economics
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Assuming that the exchange rate rises by 5 percent, hence, the dollar volume of exports rises by 5 percent, then foreign exchange earnings would
a. remain constant. b. increase by 5 percent. c. actually decrease by 5 percent. d. increase by 10 percent.
Economics
Suppose that Dillon derives 40 utils of total utility from eating 5 hotdogs and 42 utils of total utility from eating 6 hotdogs. What is Dillon's marginal utility from eating the 6th hotdog?
A) 2 B) 6 C) 7 D) 6.67
Economics