Which of the Following Is True About the Market for Capital

question 181

Multiple Choice

Which of the following is true about the market for capital?

• A) The demand for capital curve is upward sloping and the supply of capital curve is downward sloping.
• B) The supply of capital is perfectly elastic.
• C) The supply of capital curve is upward sloping and the demand for capital curve is downward sloping.
• D) The supply of capital curve is vertical and the demand for capital curve is downward sloping.
• E) None of the above answers is correct.

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Definitions:

Express Contract

A contract in which the terms of the agreement are fully and explicitly stated in words, oral or written.

Express Contract

A legally-binding agreement in which the terms are explicitly stated by the parties involved either orally or in writing.

Unilateral Contract

A contract in which one party makes a promise in exchange for an act by the other party, becoming binding only when the act is completed.

Implied

Suggested or understood without being directly stated.