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The nominal interest rate is equal to i=0,04, and the rate of depreciation of capital is d=0,09. The price of capital equipment is equal to
The nominal interest rate is equal to i=0,04, and the rate of depreciation of capital is d=0,09. The price of capital equipment is equal to the overall price level. Both price levels are expected to grow at the rate equal to n=0,01. The production function is given by Y = (AKL)0,75, where A is technology, L is labor and K is capital stock. The level of output is equal to 1600. Assume that the capital stock is always at the desired level. (Please fill in numbers; use a comma as a decimal separator: 10,5) 1. The real value of the user cost of capital is equal to 16 x x 2. If an increase in productivity of capital increases output by 160, the desired capital stock increases by 3. Suppose that Y=1600, i=0,04, d=0,09, 1=0,01 when the government imposed a tax on the profits of corporations at the rate of 0,25. The change in the desired capital stock is x The nominal interest rate is equal to i=0,04, and the rate of depreciation of capital is d=0,09. The price of capital equipment is equal to the overall price level. Both price levels are expected to grow at the rate equal to n=0,01. The production function is given by Y = (AKL)0,75, where A is technology, L is labor and K is capital stock. The level of output is equal to 1600. Assume that the capital stock is always at the desired level. (Please fill in numbers; use a comma as a decimal separator: 10,5) 1. The real value of the user cost of capital is equal to 16 x x 2. If an increase in productivity of capital increases output by 160, the desired capital stock increases by 3. Suppose that Y=1600, i=0,04, d=0,09, 1=0,01 when the government imposed a tax on the profits of corporations at the rate of 0,25. The change in the desired capital stock is x
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