The Zonamo company produces waste disposal machines and sells ...

[KimWrice]

The Zonamo company produces waste disposal machines and sells them to militaries all over the world. The company started last year with 10 million of capital on hand and invested 15 million in new capital throughout the year.
 
  At the end of the year, the company's capital stock was 17 million. Hence, for the year, depreciation equaled ________ and net investment equaled ________.
  A) 25 million; 5 million
  B) 5 million; 5 million
  C) 8 million; 7 million
  D) 7 million; 8 million
  E) 8 million; 15 million

Question 2

If the Fed wants to lower the nominal interest rate in the short run, the Fed ________ the growth rate of the quantity of money.
 
  A) raises
  B) lowers
  C) first lowers and then raises
  D) does not change
  E) None of the above answers is correct because the premise of the question is wrong since the Fed cannot affect the nominal interest rate, only the real interest rate.

[amy.lauersdorf90]

Answer to Question 1

C

Answer to Question 2

A

[KimWrice]

Thank you

[amy.lauersdorf90]

No problemo