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Assuming That the Purchase Price of Capital Goods Is the Same

Question 17

Multiple Choice

Assuming that the purchase price of capital goods is the same as the price of other goods,and that there are no taxes,the rental cost of capital for investment may be summarized as the:


A) nominal interest rate plus the depreciation rate.
B) real interest rate plus the depreciation rate.
C) purchase price of a capital good multiplied by the sum of the nominal interest rate plus the depreciation rate.
D) purchase price of a capital good multiplied by the sum of the real interest rate plus the depreciation rate.

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