Multiple Choice
The partners in the Wonderwords word processing firm spend $12,000 on computers,hoping to earn an additional $1,000 per year with them.If the partners could earn 7 percent interest on a bank deposit they should
A) put the $12,000 in the bank
B) put $6,000 in the bank and spend only $6,000 on computers
C) buy the computers because the rate of return on the computers is positive
D) buy the computers only if they do not have to borrow the funds to buy the computers
E) buy the computers because the rate of return on the computers exceeds 7 percent
Correct Answer:
Verified
Correct Answer:
Verified
Q45: A decrease in wealth will<br>A)shift the consumption
Q46: Suppose that when disposable income rises from
Q47: As domestic income rises,net exports<br>A)fall,since exports remain
Q48: Fluctuations in consumption<br>A)are noticeably smaller during recessions
Q49: A grocery store manager must decide whether
Q51: Suppose that autonomous investment level is $100
Q52: Net exports are<br>A)the value of goods produced
Q54: Dennis spends $400 on a snowblower,expecting to
Q55: Expectations that disposable income will decrease in
Q110: If a household's income rises from $46,000