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    Macroeconomics Study Set 26
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    Exam 11: The Is Curve
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    If the Real Interest Rate Is Less Than the Marginal
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If the Real Interest Rate Is Less Than the Marginal

Question 45

Question 45

Multiple Choice

If the real interest rate is less than the marginal product of capital,firms are better off:


A) producing at a loss.
B) saving their earnings in an economywide financial market.
C) accumulating more inventory.
D) borrowing in financial markets and buying more capital.
E) none of the above

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