If the Vertical Axis of a Demand Curve for Capital

question 156

Multiple Choice

If the vertical axis of a demand curve for capital is represented by the price of capital goods (rather than the interest rate) , then a rise in the interest rate would:

• A) shift the newly defined demand curve for capital to the right.
• B) shift the newly defined demand curve for capital to the left.
• C) not change the newly defined demand curve for capital.
• D) do none of the above.

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Definitions:

Canaliculi

Small, channel-like structures in bones that allow for communication and nutrient transport between osteocytes.

Osteocytes

Mature bone cells, derived from osteoblasts, that have become trapped within the matrix they have secreted. They play an essential role in bone biology, most notably in the maintenance of bone.

Tooth Sockets

The cavities in the jawbone in which the roots of teeth are anchored.

Maxillae

are the paired upper jawbones in most vertebrates, playing key roles in the structures of the mouth and face.