One "problem" with applying the Jorgenson theory of investment to project investment is that
A) the MPK is known with certainty by business executives but the user cost is uncertain.
B) the MPK is known with uncertainty by business executives but the user cost is certain.
C) both user cost and the MPK are uncertain.
D) it does not explain the accelerator.
C
You might also like to view...
Control of the nation's quantity of money is handled by
A) Congress. B) the Federal Reserve System. C) the President of the United States. D) Congress, the Federal Reserve System, and all commercial banks.
In the New Keynesian open economy model, if the exchange rate is fixed
A) fiscal policy and monetary policy are powerless. B) fiscal policy is an effective stabilization tool. C) a change in current total factor productivity increases output. D) monetary policy is an effective stabilization tool.