Which of the following will cause the rental cost/user cost of capital to decrease?
A) The rate of depreciation decreases.
B) The real interest rate increases.
C) The expected profit from the machine decreases.
D) all of the above
E) none of the above
B
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Refer to Table 18.1. M1 in this simple economy equals
A) $500. B) $550. C) $1,050. D) $4,550.
Intermediate inputs are
A) goods used for household consumption only. B) goods used for government consumption only. C) goods purchased by one business from another to use in production. D) goods purchased by foreigners. E) raw materials used in the production process.
Over the last several years and until recently, the United States has had lower unemployment rates than most European countries
a. True b. False Indicate whether the statement is true or false
Which of the following is a feature of a bond market? a. Only households can borrow money through a bond market
b. Only corporations can borrow money through a bond market. c. Both households and corporations borrow money from a bond market. d. Both corporations and government borrow money from a bond market.