If the government allows businesses to accelerate (increase) depreciation, then
A) the user cost of capital declines and V* increases.
B) the user cost of capital declines and V* decreases.
C) the user cost of capital increases and V* decreases.
D) the user cost of capital increases and V* increases.
A
Economics
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What role should the government play with respect to the agricultural sector in developing countries in their attempt to alleviate poverty?
What will be an ideal response?
Economics
The arguments of Kessel and Alchien (1959) on the terms of trade and the question of "who paid for the Civil War (1861–1865)" conclude that 40 percent of the war's burden fell on
(a) those who exported manufactures. (b) those who purchased imports. (c) farmers alone. (d) the economy as a whole.
Economics