A higher inflation rate changes the user cost of capital, which ________ the profit-maximizing level of MPK for firms, leading firms to a ________ capital-output ratio, thus ________ net investment
A) raises, higher, raising
B) raises, lower, lowering
C) lowers, higher, raising
D) lowers, higher, lowering
E) lowers, lower, raising
C
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Your boss explains to you that the total fixed costs of the company are $1 million. He also informs you that each unit of production will cost twenty five cents more with each 100-unit increase
He has asked you to draw the fixed costs of the company with costs on the vertical axis and quantity of goods sold on the horizontal axis. Without drawing a graph tell your boss what the graph will look like using words. What information did your boss give you that you didn't need in order to draw the graph?
If the deficit is financed by selling bonds to the ________, the money supply will ________, increasing aggregate demand, and leading to a rise in the price level
A) public; rise B) public; fall C) central bank; rise D) central bank; fall
The United States first instituted an income tax in
a. 1851 b. 1861 c. 1871 d. 1881
A price-discriminating monopolist having identical costs in two markets should charge a higher price in that market
a. which has a higher demand. b. which has a more elastic demand. c. which has a less elastic demand. d. which has a higher marginal revenue.