A higher interest rate will lead a firm to purchase less capital because the higher interest rate
a. lowers the marginal product of capital goods
b. causes technological change to cease
c. lowers the present value of capital goods
d. causes economies of scale to be exhausted
e. causes the capital market become monopolized
C
Economics
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If the substitution effect is stronger than the income effect, an increase in real interest rates will lead to ________ in aggregate consumption and will lead to ________ in household saving
A) an increase; a decrease B) a decrease; a decrease C) a decrease; an increase D) an increase; an unclear change
Economics
In which of the following U.S. cities is one of the 12 Federal Reserve Banks located?
A. Denver B. Seattle C. New York City D. Miami
Economics