Refer to the Data Provided in Table 11 -Ceteris Paribus, When Market Interest Rates ________, ________ Investment Projects

question 119

Multiple Choice

Refer to the data provided in Table 11.2 below to answer the following question(s) .
Table 11.2 $$\begin{array}{l}\begin{array} { l c c } &\text { Total Investment }&\text {Expected Rate of Return }\\ { \text { Project } } & \text { (dollars) } & \text { (percentage) } \\\hline \text { New bookkeeping software } & \$ 150,000 & 5 \\\text { New tractor } & \$ 200,000 & 12 \\\text { New grain storage tanks } & \$ 250,000 & 10 \\\text { Irrigation system } & \$ 500,000 & 15 \\\hline\end{array}\end{array}$$
-Ceteris paribus, when market interest rates ________, ________ investment projects are undertaken.

• A) decrease; more
• B) increase; more
• C) decrease; less
• D) increase; no

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Definitions:

Displaced Workers

Individuals who have lost their jobs due to economic changes, technological advancements, or other factors outside their control.

Export Markets

Overseas markets where goods and services produced in one country are sold.

Supply and Demand Analysis

An economic model that determines the price of a product in a market by evaluating the balance between the quantity of a good or service available and the desire (or demand) for that good or service.

Equilibrium Price

is the price at which the quantity of goods supplied is equal to the quantity of goods demanded.