Author Question: A fall in the real interest rate leads to a. an increase in the rental rate on a machine. b. a ... (Read 143 times)

pane00 · **on:** Jul 1, 2018

A fall in the real interest rate leads to
a. an increase in the rental rate on a machine.
b. a decrease in the rental rate on a machine.
c. no change in the rental rate on a machine.
d. a fall in the marginal productivity of capital.

Question 2

The annual rental rate for a machine is
a. the yearly depreciation and maintenance costs for the machine.
b. the yearly interest costs associated with owning the machine.
c. the initial purchase price of the machine divided by the number of years the machine is expected to last.
d. the sum of the yearly depreciation, maintenance, and interest costs associated with owning the machine.