Use the Following to Answer Question(s): the Demand Curve for Capital

question 138

Multiple Choice

Use the following to answer question(s) : The Demand Curve for Capital

-(Exhibit: The Demand Curve for Capital) A movement from C to B may have been a result of:

• A) a decrease in the demand for capital, because expectations regarding the profitability of capital had fallen.
• B) a decrease in the interest rate.
• C) an increase in the interest rate.
• D) Both A and C are correct.

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Definitions:

Limnetic Zone

The open surface waters in a lake, away from the shore, where sunlight penetrates, supporting planktonic and free-swimming aquatic life.

Lakes

Inland bodies of standing freshwater or, in some cases, saline water, usually larger than ponds and contained by land.

Eutrophic

A condition of water bodies, such as lakes and rivers, characterized by an abundant accumulation of nutrients that promote a proliferation of algae.

Mesotrophic

Lakes and water bodies characterized by an intermediate level of productivity, richer than oligotrophic waters but not as nutrient-rich as eutrophic waters.