Investment in capital goods only makes sense when
A) the capital goods can be used to increase the future output of consumption goods.
B) the savings rate of a country is low.
C) the interest rate is high and people have a positive rate of time preference.
D) economies are organized along capitalist lines.
Correct Answer:
Verified
Q6: Compared to investing in physical capital, human
Q7: No questions exist for this section.
Q8: If a nation is going to benefit
Q9: Erin just won Lotto America, which will
Q10: The Jones family has always been in
Q12: You are considering the purchase of a
Q13: The pure interest yield
A) reflects the expectation
Q14: Arnold is considering purchasing a business for
Q15: In order to fully realize the gains
Q16: The money rate of interest is the
A)
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