Use the Following Graph to Answer the Following Questions

question 113

Multiple Choice

Use the following graph to answer the following questions.

-If net investment is negative but technology has advanced,then

• A) the production function will shift upward and capital is unchanged.
• B) the production function will shift downward and capital is unchanged.
• C) there is an upward movement along the production function.
• D) there is a downward movement along the production function.
• E) there is an upward shift of the production function and a downward movement along the production function.

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Definitions:

Business Days

Days of the week excluding weekends and public holidays, typically Monday through Friday, when business operations are conducted.

Fixed Charge Coverage

A financial metric evaluating how well a company can pay off its fixed expenses, like interest and leases, using its earnings before interest, taxes, depreciation, and amortization (EBITDA).

Times Interest Earned Ratio

A measure of a company's ability to meet its interest obligations, calculated as earnings before interest and taxes divided by interest expense.

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a company, including issuing or repurchasing equity and debt.