The Evidence on the Supply Curve of Financial Capital Is

question 14

Multiple Choice

The evidence on the supply curve of financial capital is controversial, but at least in the short run, the elasticity of savings with respect to the interest rate appears to be _______.

• A) elastic
• B) inelastic
• C) perfectly elastic
• D) negative

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Definitions:

Maximum Profit

The highest possible financial gain a firm can achieve when all factors of production are optimized.

Memory Company

A business specializing in the production of memory storage devices, such as RAM and flash memory.

Normal Return

The minimum profit needed for a company to remain competitive in the market, covering its opportunity costs.

Government Regulates

The process by which governments impose rules and directives to govern the operation of markets and industries, often to protect consumers and maintain fair competition.