Macroeconomics (Fourth Edition)
Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
Question
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Chapter 17, Problem 2E

(a)

To determine

The user cost of capital.

(b)

To determine

The change in the user cost of capital with an increase in real interest from 2 to 4 percent.

(c)

To determine

The changes in the user cost of capital, if the corporate tax rate had been zero.

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