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    Macroeconomics Study Set 60
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    Exam 19: The Microfoundations of Consumption and Investment
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    While a Rental Firm Is Renting Out Its Capital, the Price
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While a Rental Firm Is Renting Out Its Capital, the Price

Question 94

Question 94

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While a rental firm is renting out its capital, the price of capital can change. What is the impact of a changed capital price on the firm?

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If the price of capital falls,...

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