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2 May, 08:24

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.

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  1. 2 May, 08:35
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    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.
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