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9. Earning the nominal return: Suppose the inflation rate is 5%. Suppose the marginal product of capital in a firm is 8% but that in

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9. Earning the nominal return: Suppose the inflation rate is 5%. Suppose the marginal product of capital in a firm is 8% but that in the course of produc- tion, 6% of capital is worn out by depreciation. What is the nominal return associated with an investment in capital,and why? What is the Fisher equation in this example

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