Other things equal, an increase in corporate income taxes will ________ the after-tax profitability of investment projects, which leads to ________ in output and employment
A) increase; an increase
B) increase; a decrease
C) decrease; an increase
D) decrease; a decrease
D
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If the price of a good lies between the zero-profit point and the shutdown point, a perfectly competitive firm should shut down immediately
a. True b. False Indicate whether the statement is true or false
If a line passes through the points (20,5) and (10,10), then the slope of the line is -2
a. True b. False Indicate whether the statement is true or false
A direct relationship occurs when
A. the two variables being compared change in opposite directions, or when one goes up the other goes down. B. the two variables have no identifiable relationship with each other. C. a change in one of the variables causes a change in the other variable in any direction. D. the two variables being compared change in the same direction, or when one goes up the other also goes up.
Suppose the U.S. one-year interest rate is 3% per year, while a foreign country has a one-year interest rate of 5% per year. Ignoring risk and transaction costs, a U.S. investor should invest in foreign bonds as long as the expected yearly rate of depreciation of the foreign currency is
A) less than 5%. B) greater than 5%. C) greater than 2%. D) less than 2%. E) less than 1%.