The user cost of capital is:
A) the cost of using one more unit of capital.
B) zero, if taxes are zero.
C) equal to the real interest rate.
D) equal to negative capital gain.
E) higher as corporate taxes fall.
Correct Answer:
Verified
Q15: In the equation Q16: The arbitrage condition for capital demonstrates that Q17: The important tool introduced in Chapter 17 Q18: The user cost of capital equals the: Q19: When _ said, "An investment in knowledge Q21: According to data in the text, which Q22: The investment share of GDP has a Q23: According to data in the text, the Q24: If the growth rate of the capital Q25: According to data in the text, which
A)
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