When the Quantity of Capital Increases, Then the

question 99

Multiple Choice

When the quantity of capital increases, then the

• A) SAS curve shifts rightward and the LAS curve shifts rightward.
• B) SAS curve shifts rightward and the LAS curve does not shift.
• C) SAS curve shifts rightward and the LAS curve does shifts leftward.
• D) LAS curve shifts rightward and the SAS curve does not shift.

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Definitions:

Real Interest Rate

The interest rate adjusted for inflation, indicating the real profit of an investment or the real cost of borrowing.

Government Budget Deficit

A financial situation that occurs when a government's expenditures exceed its revenues in a given fiscal period.

National Saving

National saving, also known as domestic saving, is the sum of private and public saving, representing the part of national income that is not consumed or spent by the government.

Net Exports

The value of a country's total exports minus its total imports, reflecting the trade balance.