An investment tax credit ________
A) is designed to incentivize higher capital stock expenditures at any given interest rate
B) may lead to increases in autonomous investment
C) may put upward pressure on the interest rate
D) all of the above
E) none of the above
D
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The more broadly a good is defined,
a. the more substitutes it has so the more elastic is its demand b. the fewer substitutes it has so the more elastic is its demand c. the more substitutes it has so the less elastic is its demand d. the fewer substitutes it has so the less elastic is its demand e. the more complements it has so the more elastic is its demand
Suppose there is no change in total revenue when the price changes. The demand curve for this good is:
a. perfectly elastic. b. perfectly inelastic. c. elastic. d. inelastic. e. unitary elastic.