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Suppose that the price of loanable funds is greater than the return on capital. It follows that firms will

nrod1120

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7 months ago

Suppose that the price of loanable funds is greater than the return on capital. It follows that firms will

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not borrow funds and eventually the capital stock will decrease and the return on capital will rise.

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borrow funds and, as a result, the capital stock will rise.

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not borrow funds and eventually the capital stock will increase and the return on capital will rise.

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borrow funds and, as a result, the price of credit will rise.

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none of the above

Textbook

Economics

Edition: 12^th

Author: Arnold

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mhmoud123

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7 months ago

More solutions for this book are available here

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nrod1120 Author

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7 months ago

Correct

rileyjones420

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Good timing, thanks!

TheMoffattMan

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This site is awesome

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