Your instructor feels that the authors of the book oversimplify the different views macroeconomists hold. Consequently, students who read this book and watch these videos may come away thinking they have a good handle on the major macroeconomic views, when in reality, economic views have evolved a great deal since the early days of Keynesianism. Furthermore, the views covered are not the only major views held by important macroeconomists, and many macroeconomists hold viewpoints that borrow from more than one general view. True or false: Your instructor feels that this chapter oversimplified the major views in modern macroeconomics.

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i. e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?