Other Things Being Equal, a Technological Change That Raises the Value

question 376

Multiple Choice

Other things being equal, a technological change that raises the value of marginal product of capital raises the rental rate of capital because the

• A) supply curve of capital shifts leftward.
• B) supply curve of capital shifts rightward.
• C) demand curve for capital shifts rightward.
• D) demand curve for capital shifts leftward.

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Definitions:

Bonds Payable

Long-term liabilities representing money a company owes to holders of its bonds, which must be repaid at a future date.

Debt Investments-HTM

Investments in debt securities intended to be held to maturity, accounting for fixed-income investments until they are redeemed.

Bonds Mature

The point in time when a bond's principal amount is due to be paid back to the bondholder.

Interest Payments

Payments made to a lender by a borrower in return for the use of borrowed money, typically represented as an annual percentage of the loan principal.