Let the Nominal Rate of Interest Be 15 Percent with Expected

question 12

Multiple Choice

Let the nominal rate of interest be 15 percent with expected inflation
Running 10 percent. With depreciation pegged at 10 percent and a fixed price of capital, a 50 percent tax on the revenue from capital

• A) requires that the rental price of capital increase by 100 percent to maintain the quantity demanded.
• B) requires that the rental price of capital increase by 50 percent to maintain the quantity demanded.
• C) requires that the rental price of capital increase by 100 percent to maintain the supply of capital at existing quantities.
• D) requires that the rental price of capital increase by 50 percent to maintain the supply of capital at existing quantities.
• E) none of the above.

Analyze how the American Revolution influenced perspectives on slavery and freedom.

Comprehend the paradoxes surrounding freedom, property rights, and slavery in early American history.

Recognize the post-war influence of freed African Americans in establishing colonies abroad.

Understand the implications of constitutional compromises on slavery and representation.

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