Macro- & Monetary Economics

Prio: Normal, Part I: Neoclassical Model, Type: MC, Quiz 1

Suppose that future total factor productivity and the current capital stockK increase at the same time. The effect on investment demand is

  • positive because the future marginal product of capital unambiguously rises
  • negative because the current marginal product of capital unambiguously falls
  • unclear because the net effect on the future marginal product of capital is ambiguous
  • unclear because the net effect on the current marginal product of capital is ambiguous
 

Diskussion