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Author Question: Paul Volcker was appointed to head the Federal Reserve System by ________. A) Richard Nixon in ... (Read 59 times)

biggirl4568

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on: Jun 30, 2018
Paul Volcker was appointed to head the Federal Reserve System by ________.
 
  A) Richard Nixon in 1969
  B) Jimmy Carter in 1979
  C) Ronald Reagan in 1992
  D) Barack Obama in 2009

Question 2

Explain how changes in corporate taxes affect the investment decisions of firms.
 
  What will be an ideal response?


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courtney_bruh

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

B

Answer to Question 2

Changes in corporate taxes change the user cost of capital, which changes the desired capital stock and investment. If corporate taxes increase, the user cost of capital increases, which will reduce the desired capital stock and reduce investment. Decreases in corporate taxes will decrease the user cost of capital, which then increases the desired capital stock and increases investment.


biggirl4568

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Reply 2 on: Jun 30, 2018
Gracias!

Bigfoot1984

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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