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Author Question: Why do we think about the interest rate as the "price" of capital? (Read 15 times)

caca31

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on: Oct 12, 2022
Why do we think about the interest rate as the "price" of capital?
◦ Because firms use financial capital to purchase physical capital and the interest rate is the "price" of financial capital.
◦ Because the interest rate determines the equilibrium level of investment demand.
◦ Because the interest rate represents the value the firm avoids paying to lenders by purchasing the capital instead.
◦ Because the interest rate determines the MRP of the capital, which determines its price.
◦ Because the interest rate is the amount the firm earns by purchasing the capital.
Microeconomics ¦ Ragan ¦ 17th Edition
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Marked as best answer by caca31 on Oct 12, 2022

SphnxKickin

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Reply #1 on: Oct 12, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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caca31

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Reply 2 on: Oct 12, 2022
Thanks for the timely response, appreciate it

amit

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Reply 3 on: Yesterday
Wow, this really help

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