When Capacity Utilization Rate Is High

question 51

Multiple Choice

When capacity utilization rate is high:

• A)the price level is likely to go up.
• B)consumption is likely to go down.
• C)investment is likely to increase.
• D)the rate of interest is likely to decrease.
• E)aggregate supply of goods is likely to remain constant.

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Definitions:

Equipment Lease

A contractual agreement where the owner of equipment allows another party to use the equipment for a specified period in exchange for payment.

Lease Rate

The cost of leasing a tangible or intangible asset, often expressed as a payment amount per period.

Implicit Rate

The interest rate implied by the lease payments in a leasing agreement, used in lease accounting to calculate the present value of lease payments.

Non-Cancelable Lease

A lease agreement that cannot be terminated before its expiration date by either the lessee or the lessor without incurring penalties.