If the rate of interest increases, firms will most likely respond by:
a. increasing investment
b. decreasing investment.
c. not changing investment.
d. increasing their capital stock.
b
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Tariffs reallocate income from
A) consumers to producers. B) producers to consumers. C) government to producers. D) consumers to foreigners. E) Both A and D.
Which of the following is a liability to a bank?
A) total reserves B) transaction deposits C) government securities D) loans
The marginal product of capital: a. is equal to the increase in capital necessary to generate a one-unit increase in output
b. is equal to the increase in output obtained from a one-unit increase in capital, holding other factors constant. c. is equal to the incremental profit associated with selling one more unit of output. d. is equal to the incremental cost of employing one more unit of physical or human capital.
In which of the following regions would you most expect to see capital-intensive production?
a. rural India b. central Africa c. southeast Asia d. Germany