A firm's demand for physical capital leads to its and a household's supply of saving leads to its .

Question

Quizplus · Accepted Answer

A firm's demand for physical capital refers to the demand for financial capital to invest in new equipment, buildings, or other productive assets. On the other hand, a household's supply of saving refers to the supply of financial capital available for investment. Therefore, the best choice is E - demand for financial capital and supply of financial capital. The other options (A, B, C, and D) are not accurate as they do not reflect the relationship between a firm's demand for physical capital and a household's supply of saving.

A Firm's Demand for Physical Capital Leads to Its and a Household's