Multiple Choice
In a perfectly competitive capital market, when the firm's marginal revenue product of capital exceeds the market interest rate, the
A) firm is maximizing profit
B) firm should increase its quantity demanded of loanable funds
C) firm should decrease its quantity demanded of loanable funds
D) capital market is in equilibrium
E) firm should reduce the rate of interest
Correct Answer:
Verified
Correct Answer:
Verified
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