Which of the Following Is a Reason Why a Greater

question 111

Multiple Choice

Which of the following is a reason why a greater capital stock can increase investment?
I. A greater capital stock is likely to lead to more investment because further increases in the
Demand for investment tend to lower the cost of capital.
II. A greater capital stock is likely to lead to more investment since there will be more capital to replace.
III. A higher level of capital stock encourages investment in new capital because capital becomes obsolete at a faster rate.

• A) I and II only
• B) II and III only
• C) II only
• D) I, II, and III

---

Definitions:

Out Of Poverty

A term referring to the transition or process by which individuals or groups move from a state of poverty to a more economically stable or prosperous condition.

Hard Work

Consistent effort and dedication towards completing tasks or achieving goals, often considered a key to success.

Majority

More than half of a particular group or amount, often referring to the greater part of a specific population or quantity.

Stratification

The hierarchical arrangement of individuals or groups in a society based on factors like wealth, power, and social status, leading to inequality in opportunities and rewards.