Additional investments in machines that enhance the ability to produce goods and services imply that
a. the owners of the investments will necessarily have to borrow funds.
b. the owners of the investments will necessarily have to reduce their current consumption.
c. someone will have to reduce current consumption.
d. future consumption will have to be reduced.
C
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Regardless of income level, when the ratio of taxes paid to income is constant then it is called
A. lump sum tax. B. marginal tax. C. progressive tax. D. proportional tax.
Which of the following is a tax on consumption?
a. A comprehensive general sales tax. b. A comprehensive value-added tax c. An income tax in a world without saving. d. All of the above. e. a and b
If a perfectly competitive firm is producing the short-run profit-maximizing quantity and is earning positive economic profits, the firm should anticipate ________.
A) the market equilibrium price to increase B) the market equilibrium price to decrease C) earning economic profits indefinitely D) the market supply to decrease
The larger the fraction of an investment financed by borrowing, the greater the potential for both profits and losses from that investment
a. True b. False Indicate whether the statement is true or false