Other Things the Same, If the Capital Stock Increases, Then

question 276

Multiple Choice

Other things the same, if the capital stock increases, then in the long run

• A)both output and prices are higher.
• B)output is higher and prices are lower.
• C)output is lower and prices are higher.
• D)both output and prices are lower.

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Definitions:

Cash Cycle

The period of time it takes for a company to convert its investments in inventory back into cash, reflecting how efficiently a company manages its assets.

Credit Terms

Credit terms are the conditions under which a seller extends credit to a buyer, specifying the repayment period, discount for early payment, and applicable interest charges.

Liberal Credit Terms

Credit conditions that are more favorable to the borrower, such as longer repayment periods or lower interest rates.