ECO 561 Final Exam: ECO 561 - If a firm in a purely competitive industry

25) Other things equal, a decrease in
corporate income taxes will
A. decrease the market price of real
capital goods
B. have no effect on the location of the
investment demand curve
C. shift the investment demand curve to
the right
D. shift the investment demand curve to
the left
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eco 561 final exam answers uop
26) Inflation in U.S. prices will cause
A. an increase in the demand for U.S.
dollars and an appreciation in the
exchange rate
B. an increase in the supply of U.S.
dollars and a depreciation in the
exchange rate
C. a decrease in the demand for U.S.
dollars and a depreciation in the
exchange rate
D. a decrease in the supply of U.S.
dollars and an appreciation in the
exchange rate
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