An investment tax credit effectively ________ the user cost of capital, and thus ________ gross investment

The substitution effect explains why there is an inverse relationship between the price of a product and the quantity of the product demanded

Indicate whether the statement is true or false

The 1910–1914 period was chosen as a benchmark period for determining parity prices because that was when

a. there was the greatest number of farms b. corn prices were the highest c. farmers believed that farm and nonfarm prices were such that farms goods tradedequal value for equal value with nonfarm goods d. the exchange standard was most biased in favor of farmers e. farm productivity was the lowest