From the profit maximizing conditions for the Cobb-Douglas production function, we find that the optimal input demands for labor and capital may be related as L = brK/(aw). Under what conditions are the expenditures on capital and labor equal?

If consumption is defined as C = 4,500 + 0.75Y, then the marginal propensity to save is 0.25

Indicate whether the statement is true or false

To the corporation, bonds are more risky than stocks because

a. interest rates fluctuate. b. bond interest is a fixed cost. c. investors prefer stocks to bonds. d. speculators manipulate bonds more than stocks.