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Author Question: What is the most important dimension of capital and how does that relate to its value? What will ... (Read 50 times)

joesmith1212

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on: Jun 29, 2018
What is the most important dimension of capital and how does that relate to its value?
 
  What will be an ideal response?

Question 2

Refer to Figure 16-9. Given that the economy has moved from point A to point B in the graph above, which of the following would be the appropriate fiscal policy to achieve potential GDP?
 
  A) decrease the money supply B) increase interest rates
  C) increase government spending D) increase taxes


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jaaaaaaa

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Reply #1 on: Jun 29, 2018
Answer to Question 1

The most important dimension of capital is that it exists through time. Therefore, its value is only as great as the value of the services it will render over time.

Answer to Question 2

D


joesmith1212

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

isabelt_18

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Reply 3 on: Yesterday
Excellent

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