According to the neoclassical model of investment, business fixed investment does not depend on:
A)the realized current profits of firms.
B)the marginal product of capital.
C)the interest rate.
D)tax rules affecting firms.

Question

Quizplus · Accepted Answer

The neoclassical model of investment focuses on the marginal product of capital, the interest rate, and tax rules, but not on the realized current profits of firms.

According to the Neoclassical Model of Investment, Business Fixed Investment