If the rate of depreciation increases, then user cost ________ and the desired capital stock ________.
A. rises; rises
B. rises; falls
C. falls; rises
D. falls; falls
Answer: B
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One major component of money supply M1, demand deposits, is part of a bank's
A. net worth. B. liabilities. C. reserves. D. assets.
Fiscal policy may be used to slow an expansion in order to fight ______.
a. inflation b. deflation c. unemployment d. stagnation
Production functions only apply to advanced economies
Indicate whether the statement is true or false
Which of the following are reasons economists consider valid for trade protection?
I. Protection penalizes countries that have weak environmental standards. II. Protection limits dumping of low-wage jobs into the domestic economy. III. Protection prevents low-wage jobs in foreign countries from lowering wages in the United States. A) I and II B) II and III C) I, II, and III D) none of the above