The user cost of capital is represented by which of the following ...

[colton]

The user cost of capital is represented by which of the following variables?
 
  A) t
  B) rt
  C) 1/(rt + )
  D) t /( rt + )
  E) none of the above

Question 2

Suppose there is a simultaneous central bank purchase of bonds and increase in taxes. We know with certainty that this combination of policies must cause
 
  A) an increase in the interest rate (i).
  B) a reduction in i.
  C) an increase in output (Y).
  D) a reduction in Y.

[xMRAZ]

Answer to Question 1

E

Answer to Question 2

B