Demand factors that lead to increase in the real interest rates are: A) A major breakthrough in technology B) A reduction in the corporate tax rate C) An increase in the productivity of existing capital D) An increase in expected business product demand E) A demographic change such as a younger population F) All of the above

Demand factors that lead to increase in the real interest rates are: A) A major breakthrough in technology B) A reduction in the corporate tax rate C) An increase in the productivity of existing capital D) An increase in expected business product demand E) A demographic change such as a younger population F) All of the above

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

ChapterST3: The Stock Market: Its Function, Performance, And Potential As An Investment Opportunity

Section: Chapter Questions

Problem 3CQ

See similar textbooks

Similar questions

True or false Coupon rate is used to calculate the coupon payment, and YTM is a discount rate, which will make the present value of future cash flow equals the market price, used to measure the real rate of return. Some expenditures are fixed in nominal terms and therefore increase in real terms when the inflation is serious. The preference stockholders can receive dividends at a fixed rate out of profits before the common shareholders.
Lower capital gains taxes and incentives for Individual Retirement Accounts tend to a) increase the savings rate and have no impact on the productive capacity b) increase the savings rate and increase the productive capacity c) decrease the savings rate and decrease the overall productive capacity d) decrease the investment in human capital and reduce the productive capacity e) increase the savings rate but not the overall productive capacity
Please could you help me answering this question, based on if you created a Virtual Reality game. Please make sure that your answer is very detailed throughout each step of the answer
Based on the following information: The investment cost is paid in full in quarter 0, and the cost of the factory is 100000 while the cost of the research is also 100000. The factory has a lifetime of 20 quarters (5 years) and the value of the factory at the end of quarter 20 is 0 Only green jetpacks should be produced at the factory throughout its lifetime. There is no investment in research to streamline production or material consumption. Suppose the quarterly demand in the market is constant and given at P = 338 - 0.018 * Q, where P is price and Q is the number of jetpacks in demand. Assume P is 248 USD and Q is 5000. There are 5 competitors in the market (including you), and all sell the same number of jetpacks each quarter at the price of 248 each. You produce as much as you sell. The costs associated with the quarterly production at the factory are given at K = 178 * Q + 20000, where 178 * Q is direct labor cost and materials, and 20000 is quarterly maintenance cost when Q is…
A bank charges one borrower (A) 8 percent interest per year and another borrower (B) 10 percent interest per year. Which of the following is a plausible reason for the higher interest rate for B? B has a better credit rating than A A is borrowing a larger amount than B. B is using the money for a less risky project than A A is borrowing the money for a longer period than B
Output (Y) : 4,000 Government Spending (G): 600 Desired Consumption (C): 3,400 Real interest rate: 10% If the level of desired investment is equal to 200, the real interest rate is likely to
10 00 Interest Rate (%) N B Investment Demand 0 $30 60 90 120 150 Investment ($) Price Level Multiple Choice AS Real GDP ($) AD₁ (1=120) AD₂ (1=90) *AD3 (1=60) Refer to the graphs, in which the numbers in parentheses near the AD₁, AD2, and AD3 labels indicate the level of investment spending associated with each curve. All numbers are in billions of dollars. The interest rate and the level of investment spending in the economy are at point D on the investment demand curve. To achieve the long-run goal of a noninflationary, full-employment output Qfin the economy, the Fed should try to decrease aggregate demand by increasing the interest rate from 2 to 4 percent. decrease aggregate demand by increasing the interest rate from 4 to 6 percent. increase aggregate demand by decreasing the interest rate from 4 to 2 percent. increase the level of investment spending from $120 billion to $150 billion.
Identify the factor inaccurately attributed to a rise in interest rate Select one: a) Increased investment b) Decreased investment c) International capital inflows d) Increased savings e) Decreased borrowings
A firm learns of an investment opportunity that will increase future revenue, two years from now, by $121 million. The marginal resource cost of the physical capital today is $100 million dollars. Should this firm make this investment at an interest rate of 10% Why? Using the information from this scenario a . What is the discounted percentage for this investment? What information does it provide? b . Other things being equal, could this investment be made at a higher interest rate? Lower? Why? c.Other things being equal, could this investment be made for a longer term? Shorter term ? Why?
In choosing between the range of alternative investments typically available to U.S. households, which of the following will play a role in influencing their selection of a particular investment type? Question 43 options: the expected rate of return, risk, and liquidity of each kind of investment the interest rate and the expected rate of return whether or not the majority of households are early stage investors the form of dividends, angel investors, future expectations
Which of the following statements is (are) true about NPV as an investment valuation method: (i) NPV should be used when capital is not rationed. (ii) NPV is only useful if the cash flows are positive. (iii) NPV measures the extra value investors would receive when accepting a project.
write a Microeconomic Analysis Report based on this questions using appropriate foundational microeconomics theories and techniques; what is the impact of Covid- 19 on real estate final prices? what is the impact of Covid- 19 on real estate input prices? what is the impact of Covid- 19 on real estate completion rates? What is the impact of covid driven interest rates on real estate? What is the Confident rate for people wanting to buy a home or invest?