If the rental price of a capital good is £100 and the price level is 25, then when renting the capital the owner's real earnings are:
A) 4 units of output per period.
B) 2,500 units of output per period.
C) seventy five units of output per period.
D) one-fourth unit of output per period.
Correct Answer:
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Q29: The rental price of capital is:
A)a dollar
Q30: If a household this week produces 20
Q31: The profit in the model is:
A)output -
Q32: According to the household nominal budget constraint,
Q33: The rate of return from owning capital
Q35: According to the household nominal budget constraint,
Q36: In the model the nominal interest rate
Q37: The principal of a bond is:
A)the amount
Q38: In the model the nominal interest rate
Q39: Over all household's bonds, B, must total
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