The main distinction between loanable funds and capital equipment is that
A) capital equipment has a measurable productivity, while loanable funds do not
B) capital equipment is less divisible and unalterable in the short run
C) loanable funds have an associated price (the interest rate) , while capital equipment does not
D) capital equipment may earn rents in production, while loanable funds do not
E) there are no opportunity costs associated with the investment in capital equipment
Correct Answer:
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Q132: If the interest rate is 5 percent
Q133: Q134: The marginal physical product of capital is Q135: The marginal revenue product of capital is Q136: Which of the following is not a Q138: The marginal cost of a dollar of Q139: Which of the following is not true Q140: In a perfectly competitive capital market, when Q141: The economy's demand for loanable funds is Q142: The economy's supply of loanable funds is![]()
A)
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