If the price index for capital goods is the same as the price index for other goods, an index of the real cost of capital for investment, in the absence of taxes, 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.
Correct Answer:
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Q1: If a great wave of immigration increased
Q3: Use the following to answer questions :
Exhibit:
Q4: If the capital stock is fixed and
Q5: In equilibrium, other things being equal, all
Q6: Use the following to answer questions :
Exhibit:
Q7: The rate of depreciation is the:
A) nominal
Q8: Use the following to answer questions :
Exhibit:
Q9: Business fixed investment includes:
A) rental housing that
Q10: The cost of capital for investment, if
Q11: Investment spending is:
A) generally countercyclical.
B) generally procyclical.
C)
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