Introduction to Economics 1 Deneme Sınavı Sorusu #829683

Which of the alternatives is not a factor affecting demand for capital?


Changes in population.

Technological changes.

Changes in interest rates.

Tax policies.

Expectations of firms.


Yanıt Açıklaması:

Changes in interest rate is not going to cause changes in the demand for capital. In fact, we stay on the same demand curve. Thus, talking about demand changers means that the demand curve should shift to the right or left. Since the demand for capital reflects the marginal revenue product of capital, anything that influences the marginal revenue product of capital will affect the demand for capital.

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