An upturn in business confidence may cause firms to ________ their estimates of MPK, leading to a ________ capital stock that matches MPK to the user cost of capital and thus ________ of net investment
A) lower, larger, a contraction
B) lower, larger, an expansion
C) lower, smaller, a contraction
D) raise, smaller, a contraction
E) raise, larger, an expansion
E
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A second or third worker may have a higher marginal product than the first worker in certain circumstances
a. True b. False Indicate whether the statement is true or false
Which of the following statements is correct about creating money?
a. Insurance companies can literally create money through the process of making loans. b. The banking system can literally create money through the process of making loans. c. The banking system cannot literally create money through the process of making loans. d. Insurance companies cannot literally create money through the process of making loans.