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Unformatted text preview: There are no taxes of any sort. What is the user cost of capital? What amount of capital will allow this firm to maximize profit? 3. A large open economy has desired national saving of S d = 1200 + 1000 r w , and desired national investment of I d = 1000 - 500 r w . The foreign economy has desired national saving of S d for = 1300 + 1000 r w , and desired national investment of I d for = 1800 - 500 r w . The equilibrium world real interest rate equals 4. Ch. 9 exercise from Monday...
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This note was uploaded on 09/15/2009 for the course ECON 304 taught by Professor Stone,mistyriano,alejandro during the Fall '07 term at Pennsylvania State University, University Park.
- Fall '07