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Capital

Future MRP Capital:
Interest rate the firm must pay to raise the financial capital in order to maximize profits. Physical capital is a firm’s physical asset (plant, property & inventory). Financial capital is required to purchase physical capital.

 

 

Sample Question

Question:

The demand for financial capital is least likely to be influenced by:
  • Interest rates
  • Household income
  • MRP of physical assets

Ans:
Household income     





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