One of the provisions of the second stimulus bill increased the amount of investment spending that firms were allowed to depreciate for tax purposes from 50% to 100%
This is just one of over 100 temporary tax provisions affecting firms in the United States. Temporary tax breaks such as the increase in depreciation will tend to A) increase investment expenditures because the tax breaks will entice firms to leave other countries and invest in the United States.
B) have little impact on current investment expenditures since the tax breaks are temporary.
C) increase investment expenditures in both the short run and the long run, since investment is irreversible.
D) increase investment expenditures in the short run but also increase the uncertainty and volatility of investment since the tax breaks are temporary.
D
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What is meant by the term "outside lags"?
What will be an ideal response?
In Figure 4-5 above, at what income would the interest rate that brings about money market equilibrium cause unwanted inventories of commodities to accumulate?
A) YA B) YB C) YE D) YC
Tariff rates remained high in the U.S. throughout the postbellum period for which of the following reasons?
(a) The government needed revenues to finance its expenditures. (b) Special interest groups organized themselves to realize rents. (c) Land sales dwindled as the Western frontier closed. (d) All of the above.
Other things remaining the same, an individual demand schedule shows the various quantities of a good:
a. that a person wants and is able to purchase at alternative prices. b. that are demanded with a change in the quantity demanded of a substitute good. c. that a person is able to purchase at alternative income levels. d. that are demanded at various levels of utility. e. that are demanded by the market at various prices.