What Key Change in 1975-87 Led to a Faster Growth

question 40

Multiple Choice

What key change in 1975-87 led to a faster growth rate of equipment relative to structures?

• A)a change in relative tax rates
• B)a change in relative depreciation rates
• C)a change in relative prices
• D)a change in relative marginal productivity

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Definitions:

Lower Of Cost

Refers to the accounting principle of valuing and reporting assets at the lower of its historical cost or the market value.

Original Cost

The purchase price of an asset or service, including installation fees, transportation costs, and other expenses required to bring an asset into a usable state.

Investment Account

A financial account held at a financial institution that contains securities, cash, and other assets managed for the purpose of investment.

Operating Income

Earnings before interest and taxes (EBIT), a measure of a company's profit from operations before interest expenses and taxes have been deducted.