Multiple Choice
When do firms buy capital goods?
A) when firms have sufficient funds and can afford the capital goods
B) when firms have to borrow funds to buy the capital goods
C) when firms expect the investment to yield a higher return than other possible uses of their funds
D) when firms grow more optimistic about current profit prospects
E) when the capital good has a long productive life
Correct Answer:

Verified
Correct Answer:
Verified
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