Desired Level of the Capital Stock

question 25

Multiple Choice

Desired Level of the Capital Stock
-Consider the two graphs above.Suppose rising fuel costs makes it more expensive to move goods to and from warehouses.This would ________ the desired level of inventories,as depicted in graph ________.

• A)increase;B
• B)increase;A
• C)decrease;B
• D)decrease;A

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Definitions:

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