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The User Cost of Capital Is Given by the Following

Question 58

Multiple Choice

The user cost of capital is given by the following formula,where PK is the real price of capital goods,d is the depreciation rate,and r is the expected real interest rate.


A) uc = (r + d) / PK
B) uc = PK/(r + d)
C) uc = dPK/r
D) uc = (r + d) PK

Correct Answer:

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