Multiple Choice
In the short run, because financial markets do not respond immediately to interest rate changes:
A) prices are volatile.
B) the marginal product of capital always is greater than the real interest rate.
C) the marginal product of capital never deviates to the real interest rate.
D) the marginal product of capital deviates from the real interest rate.
E) investment is less volatile than output.
Correct Answer:
Verified
Correct Answer:
Verified
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