Interest deductibility does not provide an incentive for debt finance.

A. True
B. False
C. Uncertain


B. False

Economics

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According to Keynes' philosophy of government budgets, _____

a. chronic deficits accumulate into a national debt b. permanent surpluses are desirable c. fiscal policy focuses on maintaining an annually balanced budget d. deficits dampen aggregate demand in the short run and reduce the federal debt e. deficits are appropriate during recessions

Economics

If the MPP of labor is 60 and the price of labor per period is $20, the MPP of machinery is 75 and the price of the machinery per period is $25, in order to achieve optimal input proportions the firm should use

a. more labor and less machinery. b. more machinery and less labor. c. more labor with the same amount of machinery. d. the current combination.

Economics

For a monopoly, marginal revenue is often greater than the price it charges for its good

a. True b. False Indicate whether the statement is true or false

Economics

An example of a final service is:

A. getting the oil changed in your car. B. a used car. C. Tires purchased by Ford to put on their new Explorers. D. a tire to replace your flat.

Economics