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If Capital Has a Positive Rate of Return, Then by Devoting

Question 26

Multiple Choice

If capital has a positive rate of return, then by devoting effort toward the production of capital goods, future total production will:


A) increase, but not necessarily sufficiently to pay back replacement costs.
B) increase sufficiently to pay back replacement costs, no more, no less.
C) increase sufficiently to pay back replacement costs and yield a return in the form of a percentage interest per annum.
D) increase sufficiently to pay back replacement costs, yield a return in the form of a percentage interest per annum, and also compensate those who originally abstained from consumption.
E) do none of the above.

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