If the Bank Real Interest Rate Is 2 Percent, the Percent

Multiple Choice

If the bank real interest rate is 2 percent, the percent gain in physical capital gain is 2 percent, the marginal product of capital is 3 percent, and the percent dividend return is 5 percent, what is the financial capital gain?

A) 1 percent
B) 0 percent
C) 8 percent
D) -3 percent
E) 3 percent