An Increase in the Expected Future Marginal Product of Capital

question 42

Multiple Choice

An increase in the expected future marginal product of capital would cause the IS curve to

• A)shift up and to the right.
• B)shift down and to the left.
• C)remain unchanged.
• D)remain unchanged if firms face borrowing constraints; otherwise, shift down and to the left.

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Definitions:

Considerate Behavior

Actions that show thoughtfulness towards others' feelings and needs, often characterized by kindness and respect.

Inflexible

Refers to the inability to change or adapt to new conditions or situations.

Business Meeting

A formal gathering of individuals within an organization to discuss and make decisions on business-related matters.

Body Language

Non-verbal communication through gestures, expressions, and postures, which can convey feelings and intentions.