In the 1980s,one Often-Heard Explanation for the Low Levels of Net

question 45

Multiple Choice

In the 1980s,one often-heard explanation for the low levels of net investment in the US and UK was that

• A) developed economies had no incentives for acquiring new capital
• B) investment opportunities were limited because the already large capital stock was inducing a low marginal product of capital
• C) depreciation and obsolescence were so rapid that firms could barely keep up with demands for replacing existing capital
• D) stock market participants sought short-term capital gains from market appreciations rather than long term dividends from investment
• E) rapid price inflation was creating excessive investor uncertainty

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Definitions:

Rearrangement

A chemical reaction in which the structure of a molecule is rearranged to form a new molecule.

Expected Product

The outcome that is predicted to result from a chemical reaction under specified conditions, based on the reactants and the reaction mechanism.

Solvolysis

A chemical process where the solvent plays a crucial role in the breaking of bonds in substrates, leading to the formation of products.

Chiral

Describes a molecule that cannot be superimposed on its mirror image, essentially having a non-symmetrical arrangement of atoms.