During the financial crisis it was proposed that firms be provided with a tax credit for investment projects. Such a tax credit would
a. raise both the interest rate and the real exchange rate.
b. raise the interest rate and reduce the real exchange rate.
c. reduce the interest rate and raise the real exchange rate.
d. reduce both the interest rate and the real exchange rate.
a
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The above figure shows four different markets with changes in either the supply curve or the demand curve. Which graph best illustrates the market for computers after technological advances in making computers occur?
A) Graph A B) Graph B C) Graph C D) Graph D
Suppose that a college physics experiment goes horribly wrong and releases an electronic pulse that renders all electronic equipment in the cities of Columbus, Cleveland and Cincinnati, Ohio permanently useless. No people are hurt, and no buildings are damaged. After the accident, the wages earned by Ohio workers will
a. increase because the marginal productivities of Ohio workers will increase. b. decrease because the marginal productivities of Ohio workers will decrease. c. decrease because the marginal productivities of Ohio workers will increase. d. increase because the marginal productivities of Ohio workers will decrease.