Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
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Question
Chapter 17, Problem 2E
(a)
To determine
The user cost of capital.
(b)
To determine
The change in the user cost of capital with an increase in real interest from 2 to 4 percent.
(c)
To determine
The changes in the user cost of capital, if the corporate tax rate had been zero.
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Consider an economy in which GDP is $30 billion. Tax revenue is $7 billion, consumption is $15 billion, and the government has a budget surplus of $2 billion. Show your work in each of the following questions.(c) What is national saving?(d) What is the level of investment?
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Chapter 17 Solutions
Macroeconomics (Fourth Edition)
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Similar questions
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