Profit-maximizing businesses will buy more new machinery only if
A) the interest rate increases.
B) labor costs are low and expected to fall.
C) the expected rate of return of the new machinery is greater than the interest rate.
D) the present value of the new machinery is lower than its purchase price.
Correct Answer:
Verified
Q226: If the desired real rate of interest
Q227: Effective usury laws cause
A)a surplus of money
Q228: Q229: Suppose a firm is considering the purchase Q230: It is most likely that a firm Q232: Effective usury laws Q233: Q234: Government monetary authorities manipulate the supply of Q235: In year 1 the price level is Q236: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)subsidize lenders.
B)penalize those who borrow
