Diminishing Returns to Capital ________ Occur as the Quantity of Capital

question 59

Multiple Choice

Diminishing returns to capital ________ occur as the quantity of capital increases because for a given quantity of ________ each additional unit of ________ will result in ________ incremental amounts of output.

• A)do not;capital;labour;greater
• B)do;labour;capital;smaller
• C)do not;labour;capital;greater
• D)do;capital;labour;smaller
• E)do not;labour;capital;smaller

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Definitions:

Recession

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TARP Bailout

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Deposit Multiplier

The ratio of the amount of deposits created by banks to the amount of new reserves.

Reserve Ratio

The fraction of depositors' balances banks must have on hand as cash, a regulatory requirement designed to ensure banks' liquidity and stability.