Lionel, Inc., has a total asset turnover of $2\mathrm{.}1,$ and a net profit margin of $0\mathrm{.}05.$ If the equity multiplier is $2\mathrm{.}6,$ find the ROE for this firm.

a$.0\mathrm{.}27$

b$.0\mathrm{.}28$

c$.0\mathrm{.}25$

d$.0\mathrm{.}31$

e$.0\mathrm{.}21$

Which of the following would be most likely to increase the interest rates?

a$.$ Foreign countries reduce their level of investment in the US$.$

b$.$ Firms increase their investment and expansion plans.

c$.$ The economy falls into a recession.

d$.$ The expected level of inflation decreases.