If a firm wants to borrow 10 million and the real interest rate ...

[xroflmao]

If a firm wants to borrow 10 million and the real interest rate increases from 5 percent to 6 percent, then the cost of the investment has increased by
 
  A) 6 million per year.
  B) 100,000 per year.
  C) 1 million per year.
  D) 600,000 per year.
  E) nothing because the real interest rate is the return the firm will earn on its investment.

Question 2

To achieve gains from trade, a country
 
  A) needs to have an absolute advantage in the production of all goods.
  B) specializes in the producing a good in which it has a lower opportunity cost.
  C) must produce at a point beyond its PPF.
  D) needs to have an absolute advantage in the production of at least one good.
  E) should produce at the midpoint of its PPF.

[AISCAMPING]

Answer to Question 1

B

Answer to Question 2

B

[xroflmao]

Excellent

[cpetit11]

Gracias!