The tax-exempt status of municipal bonds implies that, for private firms
A) the user cost of capital will be higher than otherwise.
B) the user cost of capital will be lower than otherwise.
C) the marginal product of capital will be lower than otherwise.
D) the accelerator will be higher than otherwise.
A
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Refer to the scenario above. What is the number of unemployed workers in the economy?
A) 1 million B) 2 million C) 3 million D) 4 million
All of the following might create problems from financial liberalization in emerging countries EXCEPT
A) ineffective screening of borrowers. B) limits on risk-taking. C) lax government supervision of banks. D) lenders failure to monitor borrowers.
The price of milk increases. Which of the following is NOT part of the likely chain of events that follows from this price change?
A) Some milk consumers reduce their consumption of milk. B) Milk producers increase their production of milk. C) The producers of feed for dairy cows increase production. D) The manufacturers of milking machines lay off some workers.
M1 includes currency held in bank vaults
a. True b. False Indicate whether the statement is true or false