Question: 16. Holding other things constant, an increase in the expected real interest rate wille A) increase the desired capital stock. B) decrease the desired capital

16. Holding other things constant, an increase in the expected real interest rate wille A) increase the desired capital stock. B) decrease the desired capital stock. C) have no effect on the desired capital stock. D) have the same effect on the desired capital stock as a decrease in corporate taxes. 7 17. Holding other things constant, a technological improvement will A) increase the desired capital stock. B) decrease the desired capital stock. C) have no effect on the desired capital stock. D) have the same effect on the desired capital stock as an increase in corporate taxes. 10 SIL

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