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An increase in the taxes on the return from capital will O increase desired investment. increase desired capital stock. increase tax-adjusted user cost of capital. decrease tax-adjusted user cost of capital.

An increase in the taxes on the return from capital will O increase desired investment. increase desired capital stock. increase tax-adjusted user cost of capital. decrease tax-adjusted user cost of capital.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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An increase in the taxes on the return from capital will increase desired investment. increase desired capital stock. O increase tax-adjusted user cost of capital. O decrease tax-adjusted user cost of capital.
Transcribed Image Text:An increase in the taxes on the return from capital will increase desired investment. increase desired capital stock. O increase tax-adjusted user cost of capital. O decrease tax-adjusted user cost of capital.
Suppose a government increases its purchases by $5 billion, and the marginal propensity to consume is less than one. We can predict that aggregate consumption will increase by less than $ 5 billion. aggregate consumption will decrease by more than $ 5 billion. aggregate consumption will increase by more than $ 5 billion. aggregate consumption will decrease by less than $ 5 billion.
Transcribed Image Text:Suppose a government increases its purchases by $5 billion, and the marginal propensity to consume is less than one. We can predict that aggregate consumption will increase by less than $ 5 billion. aggregate consumption will decrease by more than $ 5 billion. aggregate consumption will increase by more than $ 5 billion. aggregate consumption will decrease by less than $ 5 billion.
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