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Question: Investment and the corporate income tax : Suppose the user cost of capital in an economy with no corporate income tax is 10 percent.
(a) What is the user cost if the corporate tax rate rises to 20 percent? 30 percent?
(b) Suppose an economy's steady-state investment rate I / Y is 30 percent when the corporate tax rate is zero. What happens to this investment rate if the corporate tax rate rises to 20 percent? 30 percent?
(c) Are differences in corporate tax rates across countries a plausible explanation for the large variation in investment rates that we see in the data?
a new contraption to help you eat yogurt easily while driving autogurt is now on the market. it costs justin 2 in
Problem 1 For each of the following equations, graph the line and calculate its slope P = 10 - qD (Put qD on the X-axis) P = 100 - 4 qD (Put qD on the X-axis)
Discuss your feelings about bounded awareness and its various components. How has bounded awareness prevented you from making a good decision in your life or business?
The profitability of the leading cola syrup manufacturers, PepsiCo and Coca Cola, and of the bottlers in the cola business is dissimilar. PepsiCo and Coca Cola enjoy 81 operating profit as a percentage of sales; bottlers experience only 15 operating ..
Consider a perfectly competitive market with (inverse) demand of P = 90 - 3Q and supply of P = 10 + Q. Decide the equilibrium price and quantity. Compute consumer and producer surplus. What is the marginal cost, MC? What is the average cost, AC?
Two countries, Home (H) and Foreign (F) trade agricultural and manufacturing goods (A and M, respectively). Production of either good requires skilled and unskilled labor. Unskilled workers can freely move from one sector to another, while skilled wo..
A portfolio of 9 stocks and one country fund or foreign company stock is to be set up. Each student is given $100,000 to fully invest in the chosen portfolio. Inclusion of a country fund serves as an international diversification.
Which will be the outcomes of the bargaining process
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How do the income and the substitution effects determine the slope of the labor supply curve?
1. the widget industry in anytown is a monopoly controlled by widget corp. its demand curve for the local market is
Perform established products in mainstream markets, they often offer features or capabilities appreciated by some fringe customer group.
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