Multiple Choice

-The above figure shows the market for capital.Without a tax on capital income,the interest rate is ________ and firms use ________ million of capital.
A) 4 percent; $1,000
B) 3 percent; $2,000
C) 4 percent; $2,000
D) 2 percent; $1,000
E) 2 percent; $2,000
Correct Answer:
Verified
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