Multiple Choice
Investment will be more variable if the real interest rate is
A) more variable and future total factor productivity is more variable.
B) more variable and future total factor productivity is less variable.
C) less variable and future total factor productivity is more variable.
D) less variable and future total factor productivity is less variable.
E) constant with total factor productivity.
Correct Answer:
Verified
Correct Answer:
Verified
Q11: When drawn against current income, the slope
Q12: Investment tends to be more variable over
Q13: Next period's capital is equal to current-period
Q14: When drawn against the real interest rate,
Q15: When drawn against the real interest rate,
Q17: Which one of the following is a
Q18: Investment will be more variable if<br>A) there
Q19: An increase in total factor productivity causes<br>A)
Q20: An increase in lifetime wealth is likely
Q21: An asymmetric information problem arises when<br>A) interest