The user cost of capital is negatively related to ________
A) the real rate of interest
B) the depreciation rate
C) the expected rate of change of the real price of capital
D) the tertiary log of the nominal price of capital
C
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The effect of a rise in peoples' incomes on equilibrium price and quantity of Florida orange juice is to
a. increase equilibrium price and quantity b. decrease equilibrium price and quantity c. increase equilibrium price and decrease equilibrium quantity d. increase equilibrium quantity and decrease equilibrium price e. decrease equilibrium price and increase equilibrium
Input prices are fixed for a period of time and this causes firms to increase production as prices increase
a. True b. False Indicate whether the statement is true or false
Which of the following tax systems is the most fair?
a. proportional taxes b. regressive taxes c. progressive taxes d. There is no objective way to assess fairness among the three systems.
If the price of gasoline has increased from $2 per gallon to $4 per gallon at the same time that the overall price index increased from 200 to 400, then you know that the inflation adjusted price of gasoline has
A. decreased. B. increased. C. remained constant.