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Author Question: Why does capital depreciate? What will be an ideal response?[br][br][b][color=#151B54]Question ... (Read 58 times)

rlane42

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on: Jun 29, 2018
Why does capital depreciate?
 
  What will be an ideal response?

Question 2

Which of the following describes what the Fed would do to pursue an expansionary monetary policy?
 
  A) use discount policy to raise the discount rate
  B) use open market operations to sell Treasury bills
  C) raise the reserve requirement
  D) use open market operations to buy Treasury bills


yasmina

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

Capital can depreciate because it wears out physically or because it becomes obsolete.

Answer to Question 2

D


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