Author Question: As the quantity of capital increases, the marginal product of capital A) does not change. B) ... (Read 155 times)

Jipu 123 · **on:** Jun 30, 2018

As the quantity of capital increases, the marginal product of capital

A) does not change.
B) increases.
C) decreases.
D) may either increase or decrease.

Question 2

When drawn against the real interest rate, the optimal investment schedule shifts to the right if

A) current total factor productivity z increases.
B) current total factor productivity z decreases.
C) future total factor productivity z' increases.
D) future total factor productivity z' decreases.