Author Question: An increase in which of the following variables should cause an increase in profit per unit of ... (Read 103 times)

joesmith1212 · **on:** Jun 30, 2018

An increase in which of the following variables should cause an increase in profit per unit of capital?

A) total wages and salaries
B) total sales
C) the capital stock
D) the ratio of total sales to the capital stock
E) the ratio of total sales to total wages and salaries

Question 2

Suppose there is a Fed purchase of bonds and simultaneous tax cut. 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.