A decrease in the marginal cost arising from a less complex specialized investment environment will cause the optimal contract length to:

An income tax for which the average tax rate decreases with income is called a

A) regressive income tax. B) proportional income tax. C) flat-rate income tax. D) progressive income tax.

A credit market instrument that requires the borrower to make the same payment every period until the maturity date is known as a

A) simple loan. B) fixed-payment loan. C) coupon bond. D) discount bond.