An Increase in the Expected Future Marginal Product of Capital

question 42

Multiple Choice

An increase in the expected future marginal product of capital would cause the IS curve to

• A)shift up and to the right.
• B)shift down and to the left.
• C)remain unchanged.
• D)remain unchanged if firms face borrowing constraints; otherwise, shift down and to the left.

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Definitions:

Contract for the International Sale of Goods

A set of rules governing the sale of goods between parties based in different countries, aiming to provide a common legal framework.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that provides a uniform set of rules for the international sale of goods.

Writing Requirement

A legal requirement that certain kinds of contracts or agreements must be memorialized in written form to be legally binding.

Confirming Memo

A written document that summarizes the terms of an agreement or transaction between parties after an oral agreement has been made.