Cummins,Hubbard,and Hassett found that investment responded to a tax change that affected the user cost of capital,with an elasticity of

Name: Cummins,Hubbard,and Hassett found that investment responded to a tax change that affected the user cost of capital,with an elasticity of
Brand: Quizplus
Rating: 4.9 (53 reviews)

Question

Quizplus · Accepted Answer

The elasticity of -0.66 indicates that a 1% increase in the user cost of capital leads to a 0.66% decrease in investment, representing a moderately responsive behavior.

Cummins,Hubbard,and Hassett Found That Investment Responded to a Tax Change