In the long run, the marginal product of capital is greater than the real interest rate.

Name: In the long run, the marginal product of capital is greater than the real interest rate.
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In the long run, the marginal product of capital tends to equal the real interest rate, as firms will adjust their capital until the cost of borrowing (real interest rate) equals the additional output gained from an extra unit of capital (marginal product of capital).

In the Long Run, the Marginal Product of Capital Is