Solved

If the Marginal Product of Capital Is 3 Percent, the Real

Question 57

Multiple Choice

If the marginal product of capital is 3 percent, the real interest rate is 4 percent, and the capital depreciation rate is 10 percent, what is the equilibrium stock price?


A) $1.33
B) $83.33
C) $25.00
D) $0.18
E) Not enough information is given.

Correct Answer:

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