In general, the rental price of capital is
A) decreased by the amount of an expected increase in the price of capital.
B) increased by the amount of an expected increase in the price of capital.
C) not affected by the amount of an expected increase in the price of capital.
D) determined only by the real interest rate, depreciation, and the actual price of capital.
E) rarely considered by most firms operating in the real world.
Correct Answer:
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A) moved up
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A) the wage
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