Pkprice of one unit of capital1 tax rate.15 write the , Ask an Expert

Economics

MPK=20-.02K
d(depreciation)=.2
Kt(current capital stock)=900
Pk(price of one unit of capital)=1
tax rate=.15

Write the tax-adjusted user cost of capital as a function of the real interest rate(r). Also write the desired future capital stock and desired investment as functions of (r).

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9481869

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