In the Solow growth model, the law of motion of capital takes into account
A) the residential nature of houses.
B) the mobility of capital.
C) the depreciation of old capital.
D) the cost of shipping and installing capital.
C
Economics
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If the economy suffers a permanent negative supply shock because there is an increase in regulations that permanently reduce the level of potential output, then
A) potential output falls. B) the long-run aggregate supply curve shifts leftward. C) the short-run aggregate supply curve shifts upward. D) all of the above.
Economics
On a bank's balance sheet, bank capital is considered:
A) an asset B) a liability C) the difference between a firm's assets and it's shareholder's equity D) the total amount of funds banks have availability to make loans
Economics