If investment is zero, the capital stock
A. continues to flow.
B. falls to zero.
C. remains constant.
D. grows steadily.
Answer: C
Economics
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Economists classify energy and water as part of which factor of production?
A) land B) labor C) capital D) entrepreneurship E) land if undeveloped and capital if developed
Economics
Suppose that you deposit $2,000 in your bank and the required reserve ratio is 10 percent. The maximum loan your bank can made as a direct result of your deposit is
A) $200. B) $1,800. C) $2,000. D) $20,000.
Economics