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Textbooks / Business / Principles of Economics 6 / Chapter 26 / Problem Problems and Applications 26.6

Suppose that Intel is considering building a new chip-making factory. a. Assuming that

Principles of Economics | 6th Edition | ISBN: 9780538453059 | Authors: N. Gregory Mankiw ISBN: 9780538453059 472

Solution for problem Problems and Applications 26.6 Chapter 26

Principles of Economics | 6th Edition

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Principles of Economics | 6th Edition | ISBN: 9780538453059 | Authors: N. Gregory Mankiw

Principles of Economics | 6th Edition

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Problem Problems and Applications 26.6

Suppose that Intel is considering building a new chip-making factory. a. Assuming that Intel needs to borrow money in the bond market, why would an increase in interest rates affect Intels decision about whether to build the factory? b. If Intel has enough of its own funds to finance the new factory without borrowing, would an increase in interest rates still affect Intels decision about whether to build the factory? Explain.

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10/11/17  Gun stocks have risen after the mass shooting in Texas o Shares of Strum Reger (RGR) were up 4%  1.80 per share to about $53 per share o American Outdoor Brands (AOBC) rose 3%  $15.74 per share, high of about 16 middays  These shares increasingly rose during Obamas presidency, which was the opposite of what he wanted but now that Trump has become president that have decreased dramatically o This is because strict regulations by the democrats and Trump’s win removed those fears of stricter gun control laws leading to a decline in in sales and profits in in gun companies  Weak gun sales are having an impact on the sporting goods industry so Trump

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Textbook: Principles of Economics
Edition: 6
Author: N. Gregory Mankiw
ISBN: 9780538453059

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Suppose that Intel is considering building a new chip-making factory. a. Assuming that