If the government allows businesses to accelerate (increase) depreciation, then
A) the user cost of capital declines and V* increases.
B) the user cost of capital declines and V* decreases.
C) the user cost of capital increases and V* decreases.
D) the user cost of capital increases and V* increases.
A
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The impact on the land, air, and sea from consumption of goods and resources is known as the _______________
a. Ecological footprint b. Natural capital c. Species preservation d. None of the above is correct
Which of the following is NOT a common characteristic of oligopoly?
A) strategic dependence among firms in the industry B) product differentiation C) barriers to entry D) marginal cost pricing.
Deadweight loss measures the loss in society's welfare that occurs because a monopolist does not produce the socially efficient level of output
a. True b. False Indicate whether the statement is true or false
Imagine the inflation rate begins to rise rapidly, the FOMC meets and it is believed that the target interest rate needed to stem the inflation could easily exceed 20 percent. Many members of the committee believe the Fed cannot announce this high of a target for political reasons. Discuss what the FOMC could do in terms of targets and what change occurred in 2002 that is going to make their job a bit more difficult.
What will be an ideal response?