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Scenario: the Depreciation Rate of Physical Capital in an Economy

Question 181

Multiple Choice

Scenario: The depreciation rate of physical capital in an economy is 10 percent. The investment on physical capital in the current year is $500.
-Refer to the scenario above.What is the current value of the physical capital stock in the economy if the physical capital stock in the last year was worth $600?


A) $900
B) $1,000
C) $1,040
D) $1,200

Correct Answer:

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