The demand curve for capital:
a. shows the positive relation between capital usage and the quantity of capital demanded.
b. shows the positive relation between aggregate output and the quantity of capital demanded.
c. shows the negative relation between rate of inflation and the quantity of capital demanded.
d. shows the positive relation between technological change and the quantity of capital demanded.
e. shows the negative relation between price of capital and the quantity of capital demanded.
e
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Explain how public goods provided by the federal government differ from public goods provided by the state and local governments
What will be an ideal response?
Suppose that Emily opens a restaurant. She receives a loan from a bank for $200,000 . She withdraws $100,000 from her personal savings account. The interest rate on the loan is 6%, and the interest rate on her savings account is 2%. Emily's total opportunity cost of capital is
a. $2,000. b. $4,000. c. $12,000. d. $14,000.