The expected benefit of investment equals:
A. the real interest rate.
B. the value of the marginal product of capital.
C. private saving.
D. the price of the capital good.
Answer: B
You might also like to view...
Describe the changes in the variables that will cause supply for a product to decrease, shifting the supply curve up and to the left
What will be an ideal response?
If the exchange rate between the dollar and Japanese yen is below the equilibrium exchange rate, there will be a ________ of dollars, and the exchange rate will ________
A) surplus; fall to the equilibrium level B) shortage; change only when the supply curve shifts leftward C) shortage; rise to the equilibrium level D) surplus; rise to the equilibrium level
The natural rate of interest is the interest rate that
A) is determined by the intersection of the IS and LM curves. B) equates investment and saving at full employment. C) equates the supply and demand for money. D) is changed only by changes in the money supply.
Which of the following is not true about a monopsonist in a unionized labor market? a. It can set the wage rate and hire any desired number of workers at that rate. b. It is the only buyer of labor in a market. c. It tries to extract returns to monopsony power. d. It determines the optimal employment-wage rate combination by equating the marginal revenue product of labor to the marginal cost
of labor. e. It must bargain in good faith with the union.