Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Holding other things constant, the desired level of the capital stock will increase unam biguously if A) real interest rate decreases and effective tax rate increases

Holding other things constant, the desired level of the capital stock will increase unam biguously if A) real interest rate decreases and effective tax rate increases

Economics

Holding other things constant, the desired level of the capital stock will increase unam biguously if A) real interest rate decreases and effective tax rate increases. B) price of capital decreases and depreciation rate of capital increases. C) price of capital increases and effective tax rate decreases. D) expected future marginal product of capital increases and real interest rate decreases.
6. If consumers face binding borrowing constraints which prevent them from borrowing as much as they would like today (i.e., they want to consume more today than they are able to), a reduction in taxes today that is accompanied by an offsetting increase in future taxes is most likely to cause A) a rightward shift in the saving curve and a rightward shift in the investment curve. B) a leftward shift in the saving curve, but no shift in the investment curve. C) a shift in neither the saving nor the investment curve. D) no shift in the saving curve, but a rightward shift in the investment curve.

Option 1

Low Cost Option
Download this past answer in few clicks

2.89 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE