Multiple Choice
If the rate of depreciation increases,then user cost ________ and the desired capital stock ________.
A) falls; falls
B) falls; rises
C) rises; rises
D) rises; falls
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q27: The stock market just crashed; the Dow
Q28: Suppose the nominal interest rate is 6%,the
Q29: In 1991 the federal government changed the
Q30: David consumes 140 in the current period
Q31: Draw a diagram showing the determination of
Q33: Suppose your company is in equilibrium,with its
Q34: Any change in the economy that reduces
Q35: An economy has government purchases of 2000.Desired
Q36: You have just purchased a new DVD
Q37: The nominal interest rate on taxable bonds