Which of the Following Statements Is False

question 108

Multiple Choice

Which of the following statements is false?

• A)Capital depreciates over time.
• B)As the capital stock decreases, the marginal physical product of capital rises.
• C)If the return on capital is less than the price of credit, a firm will not borrow funds to invest in capital.
• D)If the return on capital is greater than the price of credit, then the price of credit must be greater than the price for loanable funds.

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Definitions:

Esker

A long, winding ridge of sand and gravel deposited by meltwater streams flowing beneath a glacier.

Meltwater Channels

Channels formed by the flow of water produced from melting ice or glaciers.

Glacial Sediment

Material deposited by glaciers as they move and melt, ranging from fine silt to large boulders.

Lateral Moraine

Sediment carried in and deposited along the sides of a glacier.