Multiple Choice
Suppose your company is in equilibrium,with its capital stock at its desired level.A permanent decline in the real interest rate now has what effect on your desired capital stock?
A) raises it,because the future marginal productivity of capital is higher
B) lowers it,because the future marginal productivity of capital is lower
C) raises it,because the user cost of capital is now lower
D) lowers it,because the user cost of capital is now higher
Correct Answer:
Verified
Correct Answer:
Verified
Q43: What is the difference between gross investment
Q44: All else equal,a decrease in the expected
Q45: You have just purchased a new VCR
Q46: The one-year T-bill rate was 8% on
Q47: When desired national saving equals desired national
Q49: The lesson to be learned from the
Q50: The Ricardian equivalence proposition says that<br>A)a budget
Q51: The effect of changes in wealth on
Q52: A temporary increase in government purchases would
Q53: In 2001 your firm's capital stock equaled