A decrease in the marginal tax rate on asset income in the short run in the market clearing model:
a. raises change the stock of capital
b. increases gross investment.
c. increases real GDP.
d. all of the above.
Ans: b. increases gross investment.
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Compare the consumer surplus in a perfect competition with that of a single-price monopoly and with a price-discriminating monopoly
What will be an ideal response?
Exhibit 36-4 ? Stock High Low Close Net chg. Brown, Inc. 55.75 33.65 42.10 (A) Greenco 78.50 45.75 (B) -0.75 Black Motors 81.50 65.90 76.00 (C) ? ? Refer to Exhibit 36-4. If the closing price of Greenco's stock on the previous day was $48.10, what value goes in blank (B)?
A. $47.35 B. $48.85 C. $45.85 D. $47.85 E. There is not enough information given to answer this question.
Which of the following would most likely increase the demand for peanut butter?
a. a decrease in the price of jelly, a good that is often used with peanut butter b. the discovery that excessive consumption of peanut butter is harmful to one's health c. crop failures that raise the price of peanuts d. the invention of a new product that consumers think is a good substitute for peanut butter
When investors use borrowed funds to pay for investments, it's called:
A. herding. B. hedging. C. leveraging. D. tulip mania.