Calculate the nominal rental price of capital Md=(.67Y-0.5r)P Ms=100 P= 0.96 Y=150 r= -6 supply of capital (Ks) = 100 Demand for capital (Kd)= 200-4(R/P) Real rental price of capital (R/P)= 25
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Calculate the nominal rental
Md=(.67Y-0.5r)P
Ms=100
P= 0.96
Y=150
r= -6
supply of capital (Ks) = 100
Real rental price of capital (R/P)= 25
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