Multiple Choice
-The above figure shows the market for capital. Without a tax on capital income, the interest rate is ________ and firms use ________ million of capital.
A) 2 per cent; $2,000
B) 4 per cent; $2,000
C) 3 per cent; $2,000
D) 2 per cent; $1,000
E) 4 per cent; $1,000
Correct Answer:

Verified
Correct Answer:
Verified
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