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An Upturn in Business Confidence May Cause Firms to ________

Question 65

Multiple Choice

An upturn in business confidence may cause firms to ________ their estimates of MPK,leading to a ________ capital stock that matches MPK to the user cost of capital and thus ________ of net investment.


A) lower,larger,a contraction
B) lower,larger,an expansion
C) lower,smaller,a contraction
D) raise,smaller,a contraction
E) raise,larger,an expansion

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