The introduction of a new technology that raises the marginal product of new capital will:
A. decrease real interest rates and increase the equilibrium quantity of saving supplied and demanded.
B. increase real interest rates and decrease the equilibrium quantity of saving supplied and demanded.
C. decrease real interest rates and the equilibrium quantity of saving supplied and demanded.
D. increase real interest rates and the equilibrium quantity of saving supplied and demanded.
Answer: D
You might also like to view...
Which of the following policy measures authorized investors to bring lawsuits against credit-rating agencies for a reckless failure to get the facts when providing a credit rating?
A) the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 B) Sarbanes-Oxley Act of 2002 C) Global Legal Settlement of 2002 D) Gramm-Leach-Bliley Act of 1999 E) Riegle-Neal Act of 1994
Typically, central banks increase the supply of money by ________
A) buying bonds from banks B) printing currency C) directing the government to issue more money to banks D) all of the above E) none of the above
Assuming a competitive labor market, the marginal revenue product of labor: a. is the ratio of the output price and the extra output produced by an additional unit of labor. b. is always equal to one
c. is used to calculate the cost of labor to a firm. d. is equal to the value of the marginal physical product of labor.
Economics
What will be an ideal response?