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

Author Question: Firms discount future profits at the interest rate r because A) it is the interest rate on their ... (Read 100 times)

littleanan

  • Hero Member
  • *****
  • Posts: 575
on: Jun 30, 2018
Firms discount future profits at the interest rate r because
 
  A) it is the interest rate on their debt.
  B) it is the same rate as for households.
  C) Ricardian equivalence holds.
  D) it has to equal the marginal productivity of capital in equilibrium.

Question 2

Consumption expenditure includes
 
  a. the production of consumption goods not sold and held in inventory.
  b. the purchase of consumption goods made domestically but consumed by foreigners.
  c. purchase of goods and services by local government.
  d. services, durables, and non-durable goods.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mohan

  • Sr. Member
  • ****
  • Posts: 362
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

D


littleanan

  • Member
  • Posts: 575
Reply 2 on: Jun 30, 2018
Gracias!

matt95

  • Member
  • Posts: 317
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

Effects of growth rate on development. Effects of growth rate on development.
Influence of enzyme-substrate affinity on the rate of an enzyme-catalyzed reaction. Influence of enzyme-substrate affinity on the rate of an enzyme-catalyzed reaction.
How to calculate invest at each rate How to calculate invest at each rate
If a graph has the following x-intercepts, which value of x is the instantaneous rate of change ... If a graph has the following x-intercepts, which value of x is the instantaneous rate of change ...
Calculating Growth Rate of Bacteria Calculating Growth Rate of Bacteria
Competitive firms and maximization Competitive firms and maximization
Video: Effect of the environment on coat color in the Himalayan rabbit Animation

For a complete list of videos, visit our video library