If the marginal rate of return expected from a purchase of ...

[WWatsford]

If the marginal rate of return expected from a purchase of equipment is greater than the market interest rate, the firm should
 a. not purchase the equipment
  b. purchase the equipment
  c. either purchase or not purchase the equipment, depending on the marginal resource cost
  d. inform stockholders that the company expects a decrease in earnings from the purchase
  e. seek government assistance in raising market interest rates

Question 2

The balance of goods and services is
 a. the same as the merchandise trade balance, since services cannot be traded
  b. equivalent to the trade balance
  c. the value of all goods and services exported minus the value of all goods and services imported
  d. the value of all tangible products exported minus the value of all tangible products imported
  e. the value of all tangible products exported minus the value of all tangible products imported, and transactions to finance the difference

[ergserg]

Answer to Question 1

B

Answer to Question 2

C