K15 If at the same time that the demand forhuman capital increases, there is also areduction in the supply of funds forhuman capital investment, interest ratesand the cost of investmentthe investment in human capital_, anda. increase; decreasesb. may rise, fall, or stay the same;increasesc. increase; may rise, fall, or stay the samed. increase; increases

Human Capital is defined as an asset that in intangible and includes the qualities of the workers…

Answered: If at the same time that the demand for…

If at the same time that the demand for human capital increases, there is also a reduction in the supply of funds for human capital investment, interest rates.

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter27: Investment, The Capital Market, And The Wealth Of Nations

Section: Chapter Questions

Problem 3CQ

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Question

K15

If at the same time that the demand for
human capital increases, there is also a
reduction in the supply of funds for
human capital investment, interest rates
and the cost of investment
the investment in human capital
_, and
a. increase; decreases
b. may rise, fall, or stay the same;
increases
c. increase; may rise, fall, or stay the same
d. increase; increases

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