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Macroeconomics

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Moderate

Profit-Maximizing Firm, Increase in Productivity

MACRO-IXFGTT

If a profit-maximizing firm choosing its capital stock for the future, faces an increase in the future level of total factor productivity, it will

A

invest less today and have a smaller capital stock in the future.

B

invest more today and have a smaller capital stock in the future.

C

invest less today and have a larger capital stock in the future.

D

invest more today and have a larger capital stock in the future.

E

none of the above