If the real interest rate is 4 percent,the marginal product of capital is 2%,the depreciation rate is 10 percent,the tax rate is 25 percent,and capital gain is 1 percent,what is the user cost of capital?
A) 40.9 percent
B) 7.5 percent
C) 12.5 percent
D) 10.5 percent
E) 17.3 percent
Correct Answer:
Verified
Q9: The arbitrage condition for capital demonstrates that:
A)returns
Q10: The important tool introduced in Chapter 16
Q12: In the arbitrage equation a profit maximizing
Q13: When capital depreciation is included in the
Q16: In macroeconomics investing includes purchases of:
A)roads.
B)buildings.
C)stocks and
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