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Which of the Following Is True of the Net Marginal

Question 62

Multiple Choice

Which of the following is true of the net marginal productivity of a capital investment?


A) The net marginal productivity falls with an increase in the additional output generated.
B) The net marginal productivity increases when the rate of interest increases.
C) The net marginal productivity falls with a higher rate of investment.
D) The net marginal productivity increases if the initial cost of capital increases.

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