Multiple Choice
A capital rental firm makes a profit if the ______ is ______ the cost of capital.
A) real rental price of capital; less than
B) equilibrium marginal product of capital; less than
C) equilibrium marginal product of capital; equal to
D) equilibrium marginal product of capital; greater than
Correct Answer:

Verified
Correct Answer:
Verified
Q52: The corporate income tax is a tax
Q53: Inventory investment includes spending on:<br>A) equipment and
Q54: The investment tax credit:<br>A) enables a firm
Q55: If the real rental price of capital
Q56: The real interest rate should be inversely
Q58: Because corporate income tax laws do not
Q59: Briefly explain the neoclassical model of investment.
Q60: Investment spending is:<br>A) generally countercyclical.<br>B) generally procyclical.<br>C)
Q61: Holding other factors constant, a decline in
Q62: The housing industry frequently complains that restrictive