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Author Question: The user cost of capital is represented by which of the following variables? A) t B) rt C) ... (Read 120 times)

colton

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on: Jun 30, 2018
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

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Reply #1 on: Jun 30, 2018
Answer to Question 1

E

Answer to Question 2

B


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