A higher nominal interest rate ________ the profit-maximizing level of MPK for firms, leading firms to a ________ capital-output ratio, thus ________ net investment
A) raises, higher, raising
B) raises, lower, lowering
C) lowers, higher, raising
D) lowers, higher, lowering
E) lowers, lower, raising
B
Economics
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Long-term debt has a maturity that is
A) between one and ten years. B) less than a year. C) between five and ten years. D) ten years or longer.
Economics
Moneys primary role in the economy comes from the benefits of lowering transactions costs and allowing specialization. This function of money is called
A) store of value. B) medium of exchange. C) standard of deferred payment. D) unit of account.
Economics