Investors considering switching capital assets may also consider the potential tax liability and decide not to switch. This is known as bracket creep.
A. True
B. False
C. Uncertain
B. False
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The direct relationship between changes in price and changes in quantity supplied is
A) a change in supply. B) shown by a shift in the supply curve. C) the law of supply. D) the law of relative production.
A rise in interest rates tends to contract the economy by appreciating the currency and reducing net exports. Provide the reasoning behind this conclusion.
What will be an ideal response?
Refer to the figure below.
If a price ceiling were imposed at point G, then producer surplus would be represented by the area ________.
A. DBC B. 0GFQ2 C. DGF D. 0DFQ2
Suppose Firm A and Firm B are considering whether to invest in a new production technology. For each firm, the payoff to investing (given in thousands of dollars per day) depends upon whether the other firm invests, as shown in the payoff matrix below. 
What is the Nash equilibrium of this game?
A. Firm A invests, and Firm B invests. B. Firm A doesn't invest, and Firm B doesn't invest. C. Firm A invests, and Firm B doesn't invest. D. Firm A doesn't invest, and Firm B invests.