If capital per-worker is rising, then ________.
A) depreciation is equal to investment
B) depreciation is greater than investment
C) depreciation is less than investment
D) depreciation is less than consumption
Question 2
With respect to the Keynesian liquidity trap, at very low levels of income, equilibrium in the money market occurs at points along the flat portion of the money demand schedule where
a. the elasticity of money demand is extremely high.
b. money demand is associated with a low interest elasticity.
c. money demand is completely interest inelastic.
d. None of the above
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