Consider the market for capital equipment. Suppose the value of the marginal product of capital equipment increases. Holding all else constant, the equilibrium rental price of capital equipment will
a. increase.
b. decrease.
c. not change.
d. It is not possible to determine what will happen to the equilibrium rental price of capital equipment.
a
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An oligopoly model in which sellers compete on prices rather than quantities is called a ________ model
A) Bertrand B) Cournot C) Ricardian D) Keynesian
There is a practice in the stock market known as "short selling" whereby an individual will borrow stock from someone, turn around and sell it and then buy it back when it's price has fallen in order to return the stock back to the lender
What expectation does this short seller have about the price of this company's stock? How can he expect to make money at this practice? What could go wrong that might cost him money?
If a pair-wise majority vote was held to determine which school project gets funded and the voters' preferences are shown in the table, if Ernie sets the agenda which option would he see was voted on first?
A. Library and lab
B. Computer lab and gym
C. Gym and library
D. It doesn’t matter which options are considered first.
Suppose the nominal interest rate is 6%, the tax rate on interest income is 30%, and expected inflation is 3%.(a)Calculate the expected real after-tax interest rate.(b)Calculate the expected real after-tax interest rate if the nominal interest rate falls to 4%.(c)Calculate the expected real after-tax interest rate if the tax rate increases to 50% (with the nominal interest rate at its original value of 6%).(d)Calculate the expected real after-tax interest rate if expected inflation increases to 5% (with the nominal interest rate at its original value of 6% and the tax rate at its original value of 30%).
What will be an ideal response?