Need help with macroeconomics question 23. Joe's Build Back Better (BBB) Ammo Corp has $15 million in cash, which it hasaccumulated from retained earnings. It was planning to use the money to build a newfactory. Recently, the interest rate has increased. How does this influence the company'sdecision, assuming the alternative to investing in a factory is loaning the money out?(A) It doesn't, since the company's shareholders are expecting a new factory.(B) It is more likely to build the factory because a higher interest rate makes thefactory more valuable.(C) It is less likely to build the factory, since the opportunity cost of using the fundsto build a factory rises with a higher interest rate.(D) It doesn't influence their decision, since the company does not need to borrowmoney to build the factory. 24. What would be associated with the type of unemployment created by the minimum-wage law?(A) In hopes of earning a higher income, Lucas goes back to school to become anelectrician.(B) Cam quits his job in a grocery store because he would rather work in landscaping.(C) Wayne decides to close his Thai restaurant because he cannot afford to pay workersthe going wage.(D) Nicole pays the workers for her auto mechanics business more than the equilibriumwage because she believes it will make them work harder.25. If an unemployed person quits looking for work, other things equal, which statementbest describes the changes in the labour statistics?(A) The unemployment rate and the labour-force participation rate stay the same.(B) The unemployment rate stays the same, and the labour-force participation ratedecreases.(C) The unemployment rate decreases, and the labour-force participation rate de-creases.(D) The unemployment rate decreases, and the labour-force participation rate in-creases.

Answer for 25th Question Explanation: If AN nonworker equal is searching for work, alternative…

Answered: ) The unemployment rate decreases, and…

Business

Economics

) The unemployment rate decreases, and the labour-force participation rate de- creases.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter1: Ten Principles Of Economics

Section: Chapter Questions

Problem 5PA

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Question

Need help with macroeconomics question

23. Joe's Build Back Better (BBB) Ammo Corp has $15 million in cash, which it has
accumulated from retained earnings. It was planning to use the money to build a new
factory. Recently, the interest rate has increased. How does this influence the company's
decision, assuming the alternative to investing in a factory is loaning the money out?
(A) It doesn't, since the company's shareholders are expecting a new factory.
(B) It is more likely to build the factory because a higher interest rate makes the
factory more valuable.
(C) It is less likely to build the factory, since the opportunity cost of using the funds
to build a factory rises with a higher interest rate.
(D) It doesn't influence their decision, since the company does not need to borrow
money to build the factory.

24. What would be associated with the type of unemployment created by the minimum-
wage law?
(A) In hopes of earning a higher income, Lucas goes back to school to become an
electrician.
(B) Cam quits his job in a grocery store because he would rather work in landscaping.
(C) Wayne decides to close his Thai restaurant because he cannot afford to pay workers
the going wage.
(D) Nicole pays the workers for her auto mechanics business more than the equilibrium
wage because she believes it will make them work harder.
25. If an unemployed person quits looking for work, other things equal, which statement
best describes the changes in the labour statistics?
(A) The unemployment rate and the labour-force participation rate stay the same.
(B) The unemployment rate stays the same, and the labour-force participation rate
decreases.
(C) The unemployment rate decreases, and the labour-force participation rate de-
creases.
(D) The unemployment rate decreases, and the labour-force participation rate in-
creases.

Branch of economics that analyzes the behavior and performance of an economy as a whole. It focuses on the study of aggregates and evaluates changes related to unemployment, gross domestic product, inflation, monetary and fiscal policies of the government.

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