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The Theory of Investment Contains Aspects of Dynamic Behavior Since

Question 10

Multiple Choice

The theory of investment contains aspects of dynamic behavior since


A) the desired capital stock depends on a firm's estimate of current but not future output
B) firms generally close only a portion of the gap between their actual and desired capital stock in each period
C) there is always an immediate response to changes in the variables that affect the desired capital stock
D) rapid adjustments of the capital stock are cheaper and tend to interfere less with regular production than slow adjustments
E) none of the above

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