The Demand Curve for Capital (With Interest Rate on Vertical

question 57

Multiple Choice

The demand curve for capital (with interest rate on vertical axis) :

• A) shows the quantities of capital that will bought at various prices of capital goods.
• B) indicates the quantity of capital firms intend to hold at each price of capital goods.
• C) is downward sloping.
• D) is represented by A and C.

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Definitions:

Sketch Graph

The process of roughly drawing a graph to represent a mathematical function or data set visually, highlighting its main features without precise calculations.

Slope

The measure of the steepness or incline of a line, defined as the ratio of the vertical change to the horizontal change between two points on the line.

Line

In geometry, a line is an infinitely extending one-dimensional figure that has no thickness and extends forever in both directions.

Projected Number

An estimate or forecast of a future number based on current trends or data.