A machine cost $15,000 to install, and has a resale value one year later of $12,000. If the real interest rate is 10%, then the user cost of capital is ________

Which is potentially the most powerful tool available to the Fed to control the supply of money?

a. open market operations b. moral suasion c. changes in reserve requirements d. discount rate changes

Economic theory is necessary and extremely important because of its relationship to economic policy

a. True b. False Indicate whether the statement is true or false