All of the following will shift the demand curve for capital, except:
a. future expectations about the demand for the good produced by a firm.
b. technological changes.
c. the price of capital.
d. the entry of new firms into the market.
e. the change in the interest rate.
c
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Refer to the figure above. If the optimal number of machines rented is 100, the market rental price must be:
A) $3 per month. B) $4 per month. C) $5 per month. D) $7 per month.
A fixed input is an input that
A. can never be moved from one location to the next. B. is fixed only for some quantities of output. C. cannot be varied in the short-run. D. can never be varied.
Suppose homebuyers believe that prices will fall over the next six months to a year. This would tend to
A) increase their demand for homes today.
B) decrease their demand for homes six months from today.
C) decrease their demand for homes today.
D) have no effect on their demand today or six months from today.
Under a fixed exchange rate regime, suppose there is a reduction in housing wealth that causes a reduction in consumption. This wealth-induced reduction in consumption will cause
A) a reduction in investment. B) an increase in net exports. C) a reduction in imports. D) all of the above E) none of the above