For each of the following changes,explain what will happen to the expected marginal product of capital curve or the user cost of capital curve,and what will happen to the desired capital stock:
a. The real price of capital goods increases.
b. The depreciation rate increases.
c. The corporate income tax rate decreases.
d. The real interest rate decreases.
e. Expected future output decreases.

Question

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The Answer of For each of the following changes,explain what will happen to the expected marginal product of capital curve or the user cost of capital curve,and what will happen to the desired capital stock:
a. The real price of capital goods increases.
b. The depreciation rate increases.
c. The corporate income tax rate decreases.
d. The real interest rate decreases.
e. Expected future output decreases.

For Each of the Following Changes,explain What Will Happen to the Expected