The main distinction between loanable funds and capital equipment is that
a. capital equipment has a measurable productivity, while loanable funds do not
b. capital equipment is less divisible and unalterable in the short run
c. loanable funds have an associated price (the interest rate), while capital equipment does not
d. capital equipment may earn rents in production, while loanable funds do not
e. there are no opportunity costs associated with the investment in capital equipment
B
Economics
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If autonomous consumption is equal to $80, then when income is zero, saving is
a. $0 b. –$20 c. –$80 d. $20 e. $80
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