Other Things Equal, Patents

question 187

Multiple Choice

Other things equal, patents

• A)decrease the expected rate of return on an R&D expenditure.
• B)increase the expected rate of return on an R&D expenditure.
• C)increase the interest-rate cost of funds used to finance an R&D expenditure.
• D)decrease the interest-rate cost of funds used to finance an R&D expenditure.

---

Definitions:

Capacity Utilization Rate

The percentage of an industry or economy's total potential output that is actually being realized at a given time.

Great Recession

A significant global economic downturn that took place approximately from 2007 to 2009, deeply affecting the world economy.

Capacity Utilization Rate

The capacity utilization rate measures the proportion of potential economic output that is actually realized, displayed as a percentage.

Great Recession

The period of global economic decline observed during the late 2000s, considered the most significant downturn since the Great Depression.