The distinction between physical and financial capital is that
A) physical capital is equal to financial capital minus depreciation.
B) financial capital depreciates and physical capital does not.
C) the value of financial capital depends on the amount of available physical capital.
D) physical capital is equal to financial capital plus depreciation.
E) financial capital is used to purchase and operate physical capital.
E
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Increases in ________ typically lead to decreases in consumption
A) the interest rate B) disposable income C) autonomous consumption D) all of the above E) none of the above
From 1973 to 1995, productivity of labor in the U.S
a. declined because of reduced capital formation. b. declined because of slower technological improvement. c. increased because of expanded technological improvement. d. increased because of expanded technological improvement.