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Author Question: The figure above shows the capital market. a. Before the government takes any action, what is the ... (Read 70 times)

itsmyluck

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on: May 24, 2019


The figure above shows the capital market.
a.   Before the government takes any action, what is the interest rate and quantity of capital?
b.   Suppose the government imposes a tax of 25 percent on the income from capital. After the tax, what is the equilibrium interest rate and quantity of capital? What is the after-tax interest rate?
c.   In the figure, darken the area that equals the deadweight loss from the tax.
Foundations of Microeconomics ¦ Bade, Parkin ¦ 8th Edition
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Marked as best answer by itsmyluck on May 24, 2019

Anton

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Reply #1 on: May 24, 2019
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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itsmyluck

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Reply 2 on: May 24, 2019
Great answer, keep it coming :)

tkempin

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Reply 3 on: Yesterday
:D TYSM

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