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Your firm has capital stock of $10 million and a depreciation rate of 10%

Economics

Your firm has capital stock of $10 million and a depreciation rate of 10%. Gross investment is $3 million. How much is net investment? A) $1.5 million B) $2.0 million C) $2.5 million D) $3.5 million
. 8. Holding other things constant, an invention that raises the future marginal product of capital (in a closed economy) would cause the investment curve to shift to the and would cause the real interest rate to (Hint: Investment-saving graph.) A) right; decrease B) right; increase C) left; decrease D) left; increase
9. If the stock market booms and people feel wealthier (in a closed economy), holding other things constant, then the real interest rate and investment (Hint: Investment-saving graph.) A) falls; declines B) rises; declines C) rises; increases D) falls; increases
10. Which of the following statements about M1 and M2 is true? A) Money market mutual fund shares are not part of Mi. B) M2 is more liquid than M1. C) M1 is larger than M2. D) Treasury bonds are part of M2.

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