Scenario 2Suppose the marginal product of capital is MPK=2-0.008K, the capital stock depreciates at 22% rate, the tax rate on revenues is 20% and price of capital is assumed to be 1. Furthermore, the economy has full-employment level of output of 5300, government purchases are 1200. Desired consumption is given by Cd=3300-2100r+0.11Y, where Y is output and r is expected real interest rate. Initial level of capital is 100.Refer to Scenario 2. What is the equilibrium level of investment?
Calculate the tax-adjusted user cost of capital for a machin…
Calculate the tax-adjusted user cost of capital for a machine that costs $8,000 and depreciates at a rate of 30%, when the real interest rate is 6% and the tax rate on revenue is 25%.
If C = $300, I = $80, G = $70, NX = -$15, and NFP = $10, how…
If C = $300, I = $80, G = $70, NX = -$15, and NFP = $10, how much is GNP?
If the substitution effect of the real interest rate on savi…
If the substitution effect of the real interest rate on saving is smaller than the income effect of the real interest rate on saving, then a rise in the real interest rate leads to a ________ in consumption and a ________ in saving, for someone who’s a lender.
Consider the following social media sites: Twitter, Facebook…
Consider the following social media sites: Twitter, Facebook, LinkedIn, YouTube, Pinterest, Instagram, and Snapchat. Choose two (2), discuss whether your company should use them, and support your opinion by explaining why.
________ is a global market entry strategy in which a foreig…
________ is a global market entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company.
Which of the following is NOT a stage of the Writing Process…
Which of the following is NOT a stage of the Writing Process?
Which of the following is NOT a Genre common in Academic Con…
Which of the following is NOT a Genre common in Academic Contexts?
Which of the following is NOT an element of the rhetorical s…
Which of the following is NOT an element of the rhetorical situation?
Which type of writing is intended to influence the reader’s…
Which type of writing is intended to influence the reader’s attitudes and actions. This type of writing seeks to support a specific position.