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Author Question: What is the difference, if any, between physical capital and financial capital? What will be an ... (Read 133 times)

altibaby

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on: Jun 29, 2018
What is the difference, if any, between physical capital and financial capital?
 
  What will be an ideal response?

Question 2

When the Fed ________, the U.S. foreign exchange rate falls.
 
  A) increases the size of the multiplier
  B) raises the interest rate
  C) raises taxes on interest income
  D) buys government securities
  E) sells government securities


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jharrington11

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

Physical capital refers to the actual tools, machinery, instruments, and buildings that have been produced in the past and are now being used to produce additional goods and services. Financial capital refers to the funds used to purchase the physical capital. Financial capital includes stocks and bonds.

Answer to Question 2

D


altibaby

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

alexanderhamilton

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Reply 3 on: Yesterday
Gracias!

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