It is often stated that the Japanese firms develop and adapt new technology to manufacturing process twice as fast as U.S. firms. If this is true, ceteris paribus, we would conclude that the
A) depreciation rate of capital does not change, but the user cost of capital increases.
B) depreciation rate of capital increases, but the user cost of capital decreases.
C) depreciation rate of capital increases, and the user cost of capital increases.
D) U.S. interest rate is too high, preventing American manufacturers from adopting new technologies.
C
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Define the following terms: a. Recession b. Mixed economy c. Transfer payments d. Progressive taxation
What will be an ideal response?
Suppose that in the short run firms are making economic profit in a monopolistically competitive industry. Explain what will eventually happen in the long run
In your answer make sure to discuss demand, price and the relationship between price and average total cost.
The reserve ratio is 20 percent. If the Fed buys $1 million of U.S. government securities and the check is deposited in Bank A, but Bank A increases its vault cash by the entire amount, then the money supply
A) does not increase. B) increases by $800,000. C) increases by $1 million. D) increases by more than $1 million.
If the interest rate increases, the opportunity cost of holding money __________, and the quantity demanded of money __________
A) does not change; does not change B) increases; also increases C) decreases; increases D) increases; decreases E) decreases; also decreases