In Equilibrium, Other Things Being Equal, All of the Following

question 99

Multiple Choice

In equilibrium, other things being equal, all of the following changes will increase the real rental price of capital except:

• A) a lower quantity of labor employed.
• B) a lower stock of capital.
• C) better technology.
• D) a higher labor-capital ratio.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Bank Borrowings

Funds that have been obtained from a bank through various types of loans.

Cash Management

The practice of collecting, managing, and investing cash in a way that meets the financial objectives of the organization.

Financing Activities

Transactions involving raising capital or repaying funds to owners and creditors, reflected in a firm's cash flow.