An upturn in business confidence may cause firms to ________ their estimates of MPK, leading to a ________ capital stock that matches MPK to the user cost of capital and thus ________ of net investment
A) lower, larger, a contraction
B) lower, larger, an expansion
C) lower, smaller, a contraction
D) raise, smaller, a contraction
E) raise, larger, an expansion
E
You might also like to view...
Which of the following will be included in the income-based method of national accounting?
A) A firm's expenditure on raw materials B) A student's expenditure on education C) A consumer's expenditure on a imported car D) A worker's retirement benefits
Refer to the table below. What is the value of A plus B plus C (A + B + C) or the present value of the first three payments?
The above table shows a 5 year payment plan. Each payment is made at the end of the year, so after one year, a payment of $1,000 is made, after two years another payment of $1,500 is made and so on. The interest rate is 3 percent.
A) $4,215.05
B) $4,100.50
C) $4,426.89
D) $3,998.
According to the law of diminishing marginal utility, which of the following is likely to be true? a. Bruce enjoys his first slice of pizza more than his fifth
b. Steve enjoys his third slice of pizza more than his second. c. Tony enjoys his second slice of pizza as much as his fifth. d. Ethan enjoys two slices of pizza as much as one slice of pizza.
The crowding-out effect is small when firms are ______.
a. pessimistic about the future b. optimistic about the future c. considering sizable future investment d. operating at full-capacity