This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Why do we think about the interest rate as the "price" of capital? (Read 57 times)

caca31

  • Full Member
  • ***
  • Posts: 145
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
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by caca31 on Oct 12, 2022

SphnxKickin

  • Full Member
  • ***
  • Posts: 165
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.
Answer Preview
Only 39% of students answer this correctly


caca31

  • Member
  • Posts: 145
Reply 2 on: Oct 12, 2022
:D TYSM

nothere

  • Member
  • Posts: 324
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

About 600,000 particles of skin are shed every hour by each human. If you live to age 70 years, you have shed 105 pounds of dead skin.

The ozone hole in September, 2003. Even as scientists verified that the rate of ozone depletion was The ozone hole in September, 2003. Even as scientists verified that the rate of ozone depletion was
Influence of enzyme-substrate affinity on the rate of an enzyme-catalyzed reaction. Influence of enzyme-substrate affinity on the rate of an enzyme-catalyzed reaction.
How to convert units of any rate to another (Part 2) How to convert units of any rate to another (Part 2)
GDP and Capital per Worker, 2009 GDP and Capital per Worker, 2009
The profit, p(t), made at a fair depends on the price of the ticket, t. The profit is modelled ... The profit, p(t), made at a fair depends on the price of the ticket, t. The profit is modelled ...
After 159 days,she paid a maturity value of $11,626, which included interest of $814. After 159 days,she paid a maturity value of $11,626, which included interest of $814.
Video: Buffers definition and the role of buffer in the body

For a complete list of videos, visit our video library