If the interest rate rises, then firms' investment spending:

Investors lower the risk of losing their investment by investing in one large firm, rather than investing in many small firms

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

A nation with cheap, efficient communications is likely to be

a. richer, ceteris paribus, because transaction costs will be lower and trade greater. b. richer only if production of goods is cheaper, too, since trade itself cannot create value. c. poorer since it spends so much on communication instead of true productivity. d. spending too much on communications, which adds nothing to the value of output.