Author Question: Suppose current sales increase by 100 million. Investment theory suggests that current investment ... (Read 134 times)

@Brianna17 · **on:** Jun 30, 2018

Suppose current sales increase by 100 million. Investment theory suggests that current investment must

A) decrease exactly by 100 million.
B) increase by exactly 100 million.
C) increase by less than 100 million.
D) decrease, but by less than 100 million.
E) none of the above

Question 2

If the nominal interest rate is 20 per year, how much money can an individual borrow today if she wants to repay 100 in one year?

A) 80.00
B) 83.33
C) 120.00
D) 78.00
E) 121.00