If d is the depreciation rate and K is the capital stock, the amount of investment required to keep the economy in a steady state is given by:
A) I = d - K. B) I = d + K. C) I = d × K. D) I = d/K.
C
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The stock market provides two functions for corporate financing: reducing investors' risk and setting the prices of stocks
a. True b. False Indicate whether the statement is true or false
Which of the following statements is false?
A) At equilibrium in a market, scarcity does not exist. B) If there is a shortage of 100 units at a price of $2 per unit, the shortage will be greater than 100 units at a price of $1 per unit. C) If there is a surplus of 30 units at a price of $3, the surplus will be less than 30 units (or even nonexistent) at a price of $2. D) If there is a surplus, suppliers will not be able to sell all they had hoped to sell at a particular price.
A decrease in the money supply might indicate that the Fed had
a. purchased bonds to increase banks reserves. b. purchased bonds to decrease banks reserves. c. sold bonds to increase banks reserves. d. sold bonds to decrease banks reserves.
Brandon is having difficulty deciding between two jobs, X and Y. As shown in the accompanying diagram, X entails a greater risk of injury than Y, but pays more. Ideally, Brandon would like a job that both pays well and does not entail a high risk of injury. If Brandon behaves like most decision-makers, then the addition of option Z would:
A. have no impact on his choice of X and Y. B. increase his likelihood of picking X. C. decrease his likelihood of accepting any job. D. increase his likelihood of picking Y.