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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
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 d. -3 percent
b. 0 percent e. 3 percent
c. 8 percent
I am confused about what equation I should use for this question, can somebody help me out this question, thank you very much!
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