Fill in the blanks to make the following statements correct. a. A firm's demand for financial capital
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a. A firm's demand for financial capital is derived from its demand for _______.
b. A firm that decides to invest in additional machinery will _______ its requirement for financial capital.
c. An increase in the marginal product of capital will lead firms to their _______ desired capital stock and therefore _______ their demand for financial capital.
d. An increase in the interest rate will _______ the present value of capital's MRP and therefore firms' desired capital stock. The result will be a _______ in the quantity of financial capital demanded by firms.
e. An increase in capital's MRP results in an _______ in the economy's investment demand curve, whereas an increase in the interest rate results in an _______ the economy's investment demand curve.
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Related Book For
Microeconomics
ISBN: 978-0321866349
14th canadian Edition
Authors: Christopher T.S. Ragan, Richard G Lipsey
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