This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: An expected tax increase will tend to cause A) an increase in stock prices. B) a reduction in ... (Read 117 times)

misspop

  • Hero Member
  • *****
  • Posts: 540
on: Jun 30, 2018
An expected tax increase will tend to cause
 
  A) an increase in stock prices.
  B) a reduction in stock prices.
  C) no change in stock prices.
  D) an ambiguous effect on stock prices.

Question 2

Explain the determinants of investment. Include in your answer an explanation of how a change in each determinant affects investment.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

akpaschal

  • Sr. Member
  • ****
  • Posts: 342
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

Investment depends on the level of sales/output and on the interest rate. As output changes, the demand for goods will change and firms will change investment so that their capacity changes with the level of economic activity (and demand). I also depends on the interest rate. As the interest rate rises, the cost of borrowing rises. Firms will cut back on investment as borrowing costs rise.


misspop

  • Member
  • Posts: 540
Reply 2 on: Jun 30, 2018
:D TYSM

vickybb89

  • Member
  • Posts: 347
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

The top five reasons that children stay home from school are as follows: colds, stomach flu (gastroenteritis), ear infection (otitis media), pink eye (conjunctivitis), and sore throat.

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

Intussusception. The condition is caused by an infolding of the small intestine, which often causes Intussusception. The condition is caused by an infolding of the small intestine, which often causes
The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha
New England children like David, Joanna, and Abigail Mason (painted by an unknown artist around 1670 New England children like David, Joanna, and Abigail Mason (painted by an unknown artist around 1670
Early-maturing boys tend to be advantaged because they often fit cultural ideals of masculinity. Early-maturing boys tend to be advantaged because they often fit cultural ideals of masculinity.
Oxidation and reduction reactions involving flavin coenzymes Oxidation and reduction reactions involving flavin coenzymes
Waste Reduction and Recycling in Canada Waste Reduction and Recycling in Canada
Video: Introduction to Pre-eclampsia

For a complete list of videos, visit our video library