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Investing in Capital Is Profitable as Long as

Question 19

Multiple Choice

Investing in capital is profitable as long as


A) interest rates are higher than the inflation rate
B) the marginal product of capital is not decreasing
C) the marginal product of capital multiplied by the output price is greater than the price of one more machine
D) the workers required to operate the machine are paid less than the value of the output produced
E) the economy is not yet operating at full capacity

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