If capital demand shifts to shorter lived equipment, then
A) net investment will fall.
B) net investment will increase.
C) net investment will not change.
D) the effect on net investment is unknown.
B
Economics
You might also like to view...
________ refers to the reduction in economic surplus resulting from not being in competitive equilibrium
A) Producer atrophy B) Deadweight loss C) Economic shortage D) Marginal cost
Economics
The expected real cost of using a unit of capital over a given period of time is known as ________
A) the real rate of interest B) the nominal rate of interest C) depreciation D) the user cost of capital
Economics