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Author Question: When a Democrat is elected as president, business leaders expect that the corporate profits tax will ... (Read 40 times)

geodog55

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on: Apr 19, 2019

Question 1

Which of the following statements of the expected flow of future benefits is 
false?


◦ Firms must rely on forecasts of expected future benefits to make sensible investment decisions.
◦ Households, business firms, and governments all evaluate the expected flow of benefits when making investment decisions.
◦ If future benefits are overestimated by the firm, the firm will under invest in capital.
◦ If future benefits are underestimated by the firm, the firm will under invest in capital.

Question 2

When a Democrat is elected as president, business leaders expect that the corporate profits tax will be increased. Most likely, this will cause business firms, 
ceteris paribus, to


◦ plan to increase investment in the future to compensate for the higher tax rate.
◦ decrease investment because they would expect lower benefits from investment.
◦ not change their investment plans because higher corporate profit taxes will not change the demand for their product.
◦ increase investment because the higher corporate profits tax will increase the return on any investment.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by geodog55 on Apr 19, 2019

dudman123

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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geodog55

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Reply 2 on: Apr 19, 2019
Great answer, keep it coming :)

upturnedfurball

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Reply 3 on: Yesterday
Wow, this really help

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