Question
Which of the following statements is correct? a. An increase in the real interest rate (r) will, ceteris paribus, increase the rental rate of machines
Which of the following statements is correct?
a. An increase in the real interest rate (r) will, ceteris paribus, increase the rental rate of machines (capital); this will prompt firms to decrease their capital usage.
b. An increase in the real interest rate (r) will, ceteris paribus, increase the rental rate of machines (capital); this will prompt firms to increase their capital usage.
c. An increase in the real interest rate (r) will, ceteris paribus, decrease the rental rate of machines (capital); this will prompt firms to increase their capital usage.
d. All of the above
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Justice In A Global Economy Strategies For Home, Community, And World
Authors: Rebecca Todd Peters, Pamela K Brubaker, Laura A Stivers
1st Edition
0664229557, 9780664229559
