Author Question: If a firm can borrow or lend at a 6 percent annual interest rate, it will a. buy more capital if it ... (Read 120 times)

futuristic · **on:** Jun 30, 2018

If a firm can borrow or lend at a 6 percent annual interest rate, it will
a. buy more capital if it has the funds on hand than if it has to borrow them
b. ignore the market rate of interest when making capital investment decisions
c. buy less capital if it has the funds on hand than if it has to borrow them
d. ignore the market rate of interest when making saving decisions
e. buy the same amount of capital whether it has the funds on hand or has to borrow them

Question 2

A nation has an unfavorable balance of trade when
a. it has a surplus in its balance of payments
b. it has a deficit in its balance of payments
c. the value of its imports of goods is greater than the value of its exports of goods
d. its current account is in surplus and its capital account is in deficit
e. it has high tariffs