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If the growth rate of the capital stock is 9 percent, the user cost of capital is 13 percent, the capital depreciation rate is 3
If the growth rate of the capital stock is 9 percent, the user cost of capital is 13 percent, the capital depreciation rate is 3 percent, and capital gain is 1 percent, then the investment rate is about: ?
The answer is 30.8 percent. If you can lay out the steps for how to solve this question that would be great! Thanks.
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