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Unformatted text preview: C. A decrease in the U.S. government budget deficit. D. A decrease in saving by firms. ** 4. Which of the following changes will lower the equilibrium rate of interest (other factors unchanged)? A. A decrease in household saving due to increased stock market wealth. B. An increase in exports with no change in imports. C. The onset of a recession that makes capital projects unattractive. ** D. The discovery of a new information technology. 5. If Michele nets $2.00 per patron, the price of a screen is $1,000,000, and the interest rate is 7.5 %, how many screens should Michele build? Number of Screens Number of Patrons 1 40,000 2 75,000 3 105,000 4 130,000 5 150,000 A. 1** B. 2 C. 3 D. 4 E. 5...
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- Spring '07