To cut costs in the face of declining demand and increased competition, many fast food restaurants have focused on reducing:

A cloth manufacturing firm is deciding whether or not to invest in new machinery. The machinery costs $45,000 and is expected to increase cash flows in the first year by $25,000 and in the second year by $30,000 . The firm's current fixed costs are $9,000 and current marginal costs are $15 . The firm currently charges $18 per unit. If the interest rate is 5% then the present value of the cash flows is

a. $6,020.41 b. $51,020.41 c. -$7,380.95 d. $10,000

If the MPC = 0.75, MPS must be _______ and the income multiplier is _______

a. 0.25; 4 b. 0.25; 5 c. 0.75; 5 d. 1.50; 5 e. 4; 0.25