Ask Question
11 September, 23:44

An increase in the supply of capital will: Group of answer choices increase the real rental price of capital. decrease the real rental price of capital. increase the productivity of capital. decrease the real interest rate.

+3
Answers (1)
  1. 11 September, 23:45
    0
    The correct answer is letter "B": decrease the real rental price of capital.

    Explanation:

    The supply of capital increases when individuals and organizations have received more income out of their labor activities or production processes. As a result, the need for requesting loans will decrease. Thus, banks and financial institutions will decrease their interest rates to promote loans which will decrease the rental price of capital.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “An increase in the supply of capital will: Group of answer choices increase the real rental price of capital. decrease the real rental ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers