Refer to the Above Diagrams

question 122

Multiple Choice

Refer to the above diagrams.Other things equal, an interest rate increase will:

• A)shift curve A to the right and shift curve B upward.
• B)shift curve A to the left and shift curve B downward.
• C)leave curve A in place but shift curve B downward.
• D)leave curve A in place but shift curve A upward.

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Definitions:

Marginal Revenue Product

The additional revenue generated by employing one more unit of a resource, such as labor or capital.

Marginal Revenue Product

The boost in revenue achieved by adding one more unit of a factor involved in production.

Marginal Product

The additional output that results from using one more unit of a particular input, keeping other inputs constant.

Variable Input

Any resource used in production whose quantity can be changed in the short term to increase or decrease output.