According to the Neoclassical Theory of Business Fixed Investment, Which

question 48

Multiple Choice

According to the neoclassical theory of business fixed investment, which of the following is true?

• A)investment spending is governed by the discrepancy between desired and actual interest rates
• B)the desired capital stock decreases with a decrease in the rental cost of capital
• C)monetary and fiscal policy changes affect investment spending but often with long lags
• D)the desired capital stock decreases with an increase in the expected level of output
• E)none of the above

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Definitions:

Global Supply Chains

Networks that span across international borders designed to source and supply materials and products, taking advantage of global efficiencies in the delivery of goods and services.

Logistics Technology Systems

Integrated software and hardware solutions designed to optimize the management of the flow of goods from origin to consumption.

FOB Point

A shipping term indicating the point at which the ownership and risk related to goods are transferred from seller to buyer, defined in terms of location.

Legal Title

A formal recognition of ownership of property or assets which includes the rights to use, sell, or control the said property or assets.