A drop in the user cost of capital will lead to an equal ________ in the MPK of profit-maximizing firms, requiring a ________ v*, thus ________ gross investment
A) drop, higher, boosting
B) drop, lower, dampening
C) drop, lower, boosting
D) rise, higher, dampening
E) rise, lower, boosting
A
Economics
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Refer to Scenario 25-2. As a result of Kristy's deposit, checking account deposits in the banking system as a whole (including the original deposit) could eventually increase up to a maximum of
A) $8,000. B) $10,000. C) $50,000. D) $100,000.
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The crucial incentive to produce new ideas comes from
A) patents and copyrights. B) international trade. C) rising population growth. D) shortages of physical and human capital. E) government economic guidance.
Economics