Which of the following will raise the expected marginal product of capital?
A) a reduction in the interest rate
B) increased business optimism
C) an investment tax credit
D) a reduction in the corporate profits tax
B
Economics
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Economics
Two variables are positively correlated if:
A. they move in the same direction. B. they move in the opposite direction. C. their movements tend to be unrelated. D. one is simply a multiple of the other.
Economics