The tax-exempt status of municipal bonds implies that, for private firms
A) the user cost of capital will be higher than otherwise.
B) the user cost of capital will be lower than otherwise.
C) the marginal product of capital will be lower than otherwise.
D) the accelerator will be higher than otherwise.
A
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An increase in the money supply decreases the interest rate in the short run
a. True b. False Indicate whether the statement is true or false
Which of the following decreases supply in the market for pizza?
a. Pizza shop employees successfully organize a union and negotiate a pay increase. b. Cheese prices drop because price supports for dairy farmers are removed. c. Suppose that some hot sandwich shops can also produce pizzas, and consumer demand for hot sandwiches declines sharply, reducing the profitability of producing hot sandwiches. d. The Surgeon General announces that eating pizza reduces the incidence of stomach cancer.