Suppose the interest rate is 2 percent,the capital depreciation rate is 5 percent,and the price of a new capital is $100.What is the user cost of capital?
A) $5
B) $2
C) $3
D) $7
Correct Answer:
Verified
Q63: An invention that raises the future marginal
Q64: A temporary decrease in government purchases would
Q65: The target overnight rate is
A)the rate that
Q66: If consumers foresee future taxes completely,a reduction
Q67: John deposits $10,000 he earned from his
Q69: A higher interest rate will lead consumers
Q70: The main reason that a theory cannot
Q71: Most people would prefer
A)higher current consumption relative
Q72: The after-tax real interest rate
A)can only be
Q73: A decline in consumer confidence will lead
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents