An Increase in the Capital Stock Would Shift the Production

question 131

Multiple Choice

An increase in the capital stock would shift the production function _______ and the long-run aggregate supply curve to the _______.

• A) upward; right
• B) upward; left
• C) downward; left
• D) to the right; right

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Definitions:

National Debt

The total amount of money that a country's government has borrowed, by various means, from the private sector and other governments.

Interest Rates

The cost of borrowing money or the return for investing money, typically expressed as a percentage of the principal amount per year.

Primary Reserves

Liquid assets held by financial institutions as a primary means to meet immediate withdrawal demands or regulatory requirements.

Secondary Reserves

Liquid assets that can quickly be converted into cash but are not held as compulsory reserves by a financial institution.