Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
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Chapter 17, Problem 3E
(a)
To determine
The user cost of capital in the given economy, if the corporate income tax increases from 10 percent to 20 and 30 percent.
(b)
To determine
The effect of an increase in the corporate tax on the steady-state investment of an economy.
(c)
To determine
The relationship between the corporate income tax and the steady-state investment of an economy.
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Macroeconomics (Fourth Edition)
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