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The Demand for Capital Is QD = 46 - 10r

Question 112

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The demand for capital is QD = 46 - 10r and the supply of capital is QS = 2r - 2, where r is the interest rate (measured as a percentage) and Q measures the quantity of capital in millions of dollars. What are the equilibrium interest rate and quantity of capital?

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Equilibrium occurs w...

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