In the short term, how is the supply of capital characterized, and what determines it in the long term?

Show Answers

changeable, influenced by technological advancesunchanging, affected by future outlooksfixed, governed by the cost of renting capitalflexible, dependent on prevailing interest rates

Explanation

In the short run, the amount of capital available is fixed because it cannot be quickly adjusted. Over the long run, the supply of capital depends on the rental price of capital, which influences investment decisions and capital accumulation.