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Keeping the Marginal Productivity of Capital Constant While Investment in Plant

Question 24

Multiple Choice

Keeping the marginal productivity of capital constant while investment in plant and equipment expands requires


A) a slowdown in the growth rate.
B) a decrease (shift to the left) in the marginal productivity of capital schedule.
C) a falling rate of return on investment.
D) that the productivity of existing technology be exhausted before investing in something new.
E) continued development of new technologies, products, and processes.

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