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Shouldn't the answers c & d be correct?

no, c) is not correct because the question literally states that the output will increase. When we talk about economic swings we mean economy going back and forth between recession and expansion. d) ...
1muflon1's user avatar
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rental cost of capital

Rental cost of capital (RC) is the cost of acquiring capital which a firm must bear . It is the sum of rate of interest (r) and depreciation charges of the capital stock(d). So, RC = r+d .
Ayush Singh Jamwala's user avatar

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