When the rate of interest (or price of capital) decreases, the

a. quantity demanded of loanable funds by the firm will decrease
b. quantity demanded of loanable funds by the firm will increase
c. firm's MRP of capital increases
d. firm's MPP of capital increases
e. firm's MRP of capital decreases

B

Economics

You might also like to view...

A firm's ability to process information depends on:

a. its human resources. b. how the information is transferred within the organization. c. its organizational design. d. how the information originates.

Economics

Kristi and Rebecca sell lemonade on the corner. It costs them 7 cents to make each cup. On a certain day, they sell 40 cups. Their producer surplus for that day amounts to $19.20 . Kristi & Rebecca sold each cup for

a. 31 cents. b. 38 cents. c. 45 cents. d. 55 cents.

Economics