Multiple Choice
Which of the following statements is false?
A) Capital depreciates over time.
B) As the capital stock decreases, the marginal physical product of capital rises.
C) If the return on capital is less than the price of credit, a firm will not borrow funds to invest in capital.
D) If the return on capital is greater than the price of credit, then the price of credit must be greater than the price for loanable funds.
Correct Answer:
Verified
Correct Answer:
Verified
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