A reduced interest rate stimulates investment by
a. improving the prospects for a large profit from new investment
b. enabling firms to ignore the opportunity costs of financing new investment
c. increasing the opportunity cost of the investment
d. reducing the cost of the investment
e. signaling the existence of eager buyers
D
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Yesterday, the dollar was trading in the foreign exchange market at 1.10 euros per dollar. Today, the dollar is trading at 1.05 euros per dollar. The dollar has ________ and a possible reason for the change is ________ in the U.S. interest rate
A) depreciated; a decrease B) appreciated; a decrease C) depreciated; because there has been no change D) appreciated; an increase E) depreciated; an increase
The modification of manufacturing processes so as to reduce the resulting environmental damage is an endeavor that requires capital investment, labor inputs, and technology. What then follows from this statement?
A. Environmental damage is a regrettable but necessary side effect of economic growth. B. The way to reduce pollution is to educate people about its effects. C. The condition of the environment will be better in slower-growing countries. D. Economic growth can benefit the environment.