Suppose a one-yearinvestment project is projected to provide $200,000 in revenues. The investment will cost the company $180,000. Given this information, one should commit to the project:

A.regardless of the interest rate.

B.if the interest rate is less than or equal to 11.1%.

C.if the Fed is expected to decrease the money supply.

D.if the interest rate is higher than 11.1%.

If a country has a trade surplus, we can conclude that it also has a:

A.budget surplus.

B.net capital outflow.

C.net capital inflow.

D.budget deficit.

Which statement is an example of investment spending in macroeconomics?

A.The owner of a Domino's Pizza store has employed two students to deliver pizzas.

B.The manager of a Domino's Pizza store has deposited cash in the bank.

C.A Domino's Pizza store has purchased a new pizza oven.

D.The owner of the Domino's Pizza store has bought stock in Domino's.

If the government in a closed economy is running a budget balance of zero (point E) when it decides to increase defense spending by $200 billion and then finances the spending by selling bonds, the equilibrium interest rate will:

A.fall to 12%.

B.rise to 16.5%.

C.rise to 18%.

D.rise to 21%.

E.None of the above