Use the following cumulative investment schedule to answer the next question. Expected Rate of ReturnCumulative Amount of Investment (in billions)22%$11020150161801021052952380According to the cumulative investment table above, if the real interest rate falls from 20% to 16%, then
A. $180 billion of additional investments will be undertaken.
B. $440 billion of total investments will be undertaken.
C. $330 billion of total investments will be undertaken.
D. $30 billion of additional investments will be undertaken.
Answer: D
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Answer the following questions true (T) or false (F)
1. When a business is set up as a partnership, the owners of the business face unlimited liability. 2. The only type of business that faces unlimited liability is a sole proprietorship. 3. In the United States, partnership profits are taxed at the business level and then are taxed again as personal income in the form of dividend payments.
A firm should continue to operate even at a loss in the short run if:
A. Its output is above the break-even point B. Its revenues are less than its fixed costs C. It can cover its variable costs and some of its fixed costs D. It has some fixed costs that cannot be brought down to zero