Which of the following will cause an increase in the rental cost / user cost of capital?
A) The rate of depreciation increases.
B) The real interest rate decreases.
C) The expected profit from the machine decreases.
D) all of the above
E) none of the above
Correct Answer:
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Q24: Suppose that,when the price of steel drops,steel
Q25: Assume the following: (1)the real cost of
Q26: The "depreciation rate" tells us
A)the interest rate
Q27: The data shows that total profit in
Q28: Suppose individuals expect future output to be
Q30: An increase in which of the following
Q31: The user cost of capital is represented
Q32: Which of the following statements is true?
A)A
Q33: An increase in which of the following
Q34: Explain why current consumption might change even
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