The process of building up capital includes
a. acquiring funds from banks and other sources.
b. use of borrowed funds to hire inputs to build factories, warehouses, etc.
c. completion of the investment process by adding machinery and inventory.
d. All of the above are correct.
d
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Suppose a country produces only bikes and clothing. The country achieves an efficient allocation of resources when
A) it can't produce any more bikes unless it gives up clothing. B) it produces equal amount of bikes and clothes. C) the marginal social benefit of producing a bike equals the marginal social cost of producing a bike. D) the prices charged for the goods are as low as possible.
Behind the Glass-Steagall Act was the feeling that __________ is too risky for commercial banks
A) underwriting corporate securities B) competing to pay high deposit rates C) making business mortgage loans D) interstate branching
A phenomenon called Moore's law says:
A. computing capacity has doubled every two years. B. physical capital will double every two years in countries with high rates of growth. C. 70 divided by the growth rate equals how long it will take a country to double its income level. D. 70 divided by the growth rate equals how long it will take a country to double its productive capacity.
If personal income taxes and business taxes decrease, then this will:
A. increase aggregate demand and aggregate supply. B. decrease aggregate demand and aggregate supply. C. increase aggregate demand and decrease aggregate supply. D. decrease aggregate demand and increase aggregate supply.