Which of the following will raise the expected marginal product of capital?
A) a reduction in the interest rate
B) increased business optimism
C) an investment tax credit
D) a reduction in the corporate profits tax
B
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Assume that all taxes are lump-sum, net exports = 0, and the marginal propensity to consume is 0.8. Then, if investment and taxes were each to fall by $100 million, the equilibrium level of income would
A) rise by $100 million. B) fall by $100 million. C) rise by $500 million. D) fall by $500 million.
In recent years, the amount of international trade in which the United States engages has
a. increased, raising domestic demand for unskilled labor. b. increased, reducing domestic demand for unskilled labor. c. decreased, raising domestic demand for unskilled labor. d. decreased, reducing domestic demand for unskilled labor.
Assume an economy experiences an increase in productivity that occurs as a result of a more widespread implementation of a major technological breakthrough. Given this information, we would expect which of the following to occur?
A) aggregate demand would not change B) aggregate demand would shift to the right C) aggregate demand would shift to the left D) both the aggregate demand and aggregate supply curves would shift to the left
The Taft-Hartley Act was passed in the ___ and the Labor Relations (Wagner) Act was passed in the ___.
A. 1930s; 1930s B. 1930s; 1940s C. 1940s; 1930s D. 1940s; 1940s