An investment tax credit will lead to
a. a lower equilibrium interest rate in equilibrium
b. a decrease in household consumption spending in equilibrium
c. slower economic growth
d. lower equilibrium investment in physical capital
e. a increase in household consumption spending
B
You might also like to view...
The price elasticity of demand for a good that is a necessity is likely to be:
A) unit elastic. B) perfectly elastic. C) elastic, but not perfectly elastic. D) inelastic.
All of the following actions were taken by the Thai government to help Thailand maintain its peg against the dollar in the 1990s except
A) imposing restrictions on exports to the United States to prevent too many dollars from entering the economy. B) borrowing dollars from the International Monetary Fund in exchange for baht. C) increasing domestic interest rates to attract more foreign investors. D) buying baht on the foreign exchange market to support higher demand for the baht.