Which of the Following Situations Would Increase the Demand for Capital

Multiple Choice

Which of the following situations would increase the demand for capital?

A) An improvement in technology increases the marginal product of capital.
B) Capital wears out 50 percent faster than it used to.
C) The Fed increases the interest rate.
D) Sales are higher than anticipated, so the firm has enough cash on hand that it can afford to buy the new equipment outright.
E) The Fed decreases the interest rate.