An Increase in the Supply of Capital, Which Is a Substitute

question 33

True/False

An increase in the supply of capital, which is a substitute to labor, will lead to a decrease in the demand for labor.

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Definitions:

Capital Account

A national account that shows the net change in asset ownership for a nation, including assets from financial and physical capital.

Current Account

This term refers to a country's transactions with the rest of the world, including trade in goods and services, earnings on investments, and transfer payments.

Exchange Rate

The value at which one currency can be exchanged for another in the foreign exchange market, affecting international trade and investments.

Pound

The pound is a unit of currency used in the United Kingdom and other territories, symbolized as £.