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:

Schizophrenia

A severe mental disorder characterized by disordered thoughts, behaviors, and a loss of connection with reality.

Urinary Tract Infection

An infection in any part of the urinary system, including kidneys, ureters, bladder, and urethra, often caused by bacteria.

Stigma

A mark of disgrace or infamy; a sign of severe social disapproval of personal characteristics or beliefs perceived to be against cultural norms.

Chronic Incontinence

A long-term inability to control urination or defecation.