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Social Science Clinic => Economics => Macroeconomics => Topic started by: laurencescou on Jun 30, 2018

Title: User cost is equal to ________. A) interest cost plus the expected rate of change in the real ...
Post by: laurencescou on Jun 30, 2018

User cost is equal to ________.
 
  A) interest cost plus the expected rate of change in the real price of capital plus depreciation
  B) interest cost minus the rate of depreciation
  C) interest cost minus the expected rate of change of the real price of capital plus depreciation
  D) interest cost plus depreciation

Question 2

When the Federal Reserve ________.
 
  A) drains liquidity, the federal funds rate falls
  B) drains liquidity, real interest rates fall
  C) provides more liquidity, the federal funds rate falls
  D) all of the above
  E) none of the above

Title: User cost is equal to ________. A) interest cost plus the expected rate of change in the real ...
Post by: juwms on Jun 30, 2018

Answer to Question 1

C

Answer to Question 2

C