What is the difference between "capital" and "financial capital"? Which is a factor of production?
What will be an ideal response?
"Capital" is the actual physical good, such as a factory, an assembly line, or a computer server. "Financial capital" is stocks, bonds, or money. Financial capital is used to fund the purchase of the (physical) capital. Financial capital is NOT a factor of production because it is not used to help produce goods and services. Capital, however, is a factor of production because capital is used to help produce goods and services.
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The interest rate which the Fed charges banks that borrow reserves from it is the:
a. federal funds rate. b. discount rate. c. reserved rate. d. investment rate. e. check rate
There is a
a. short-run tradeoff between inflation and unemployment. b. short-run tradeoff between the actual unemployment rate and the natural rate of unemployment. c. long-run tradeoff between inflation and unemployment. d. long-run tradeoff between the actual unemployment rate and the natural rate of unemployment.