The investment share of GDP has a ________ relationship to the user cost and a ________ relationship to the capital depreciation rate.
A) negative; negative
B) positive; positive
C) zero; positive
D) negative; positive
E) positive; inverse

Question

Quizplus · Accepted Answer

The investment share of GDP typically has a negative relationship with the user cost because higher costs discourage investment. It has a positive relationship with the capital depreciation rate because higher depreciation requires more investment to maintain the capital stock.

The Investment Share of GDP Has a ________ Relationship to the User