A decline in the desired level of capital and investment will result from ________
A) a rise in the real price of capital
B) a decrease in the rate of depreciation
C) a decrease in the real interest rate
D) a decrease in the real price of capital
A
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A firm is employing capital and labor such that the marginal product of capital is 80 and the marginal product of labor is 20
If the price of a unit of capital is $30 and the price of a unit of labor is $15, is the firm minimizing its costs? If not, can you recommend a change for the firm to make in its relative amounts of labor and capital used? Explain.
The following figures are for the banking system. Deposits at the central bank = 400 U.S. Government Securities = 600 Transactions Deposits = 1,700 Loans = 800 Stockholder's Equity = 70 Other Assets = 450 Other Liabilities = 380 Borrowing from the Federal Reserve = 250 Cash in the Vault = 150 The reserve ratio on transactions deposits = 10% Currency in circulation = 10 The monetary base equals:
a. 560 b. 1,700 c. A multiple of 80 d. Cannot be determined with this information. e. 80
Which of the following is NOT one of the core deliverables of a logistics system?
a. Excess capacity b. Timely Delivery c. Transparency d. Product availability e. Product availability
In a certain economy, the components of planned spending are given by: C = 500 + 0.8(Y - T ) - 300rI P= 200 - 400rG = 200NX = 10T = 150 Given the information about the economy above, what would be the impact on autonomous expenditures of a one-percentage-point increase in the real interest rate (r )?
A. Autonomous expenditures would decrease by 35 units. B. Autonomous expenditures would decrease by 700 units. C. Autonomous expenditures would decrease by 7 units. D. Autonomous expenditures would increase by 35 units.