Consider a household with a wealth endowment of $5, and a MB of consumption of $1.71, 1.53, 1.39, 1.29 and 1.23 for 1st, 2nd..... unit of consumption C. A firm faces MR at $1.66, 1.52, 1.42, 1.34 and 1.28, for the 1st, 2nd..... unit of capital, K. In this market, if the interest rate is 41%, then the demand for funds is units and the supply of funds is units. 02:2 O 2:3 O 3:3 O 3: 2

Consider a household with a wealth endowment of $5, and a MB of consumption of $1.71, 1.53, 1.39, 1.29 and 1.23 for 1st, 2nd..... unit of consumption C. A firm faces MR at $1.66, 1.52, 1.42, 1.34 and 1.28, for the 1st, 2nd..... unit of capital, K. In this market, if the interest rate is 41%, then the demand for funds is units and the supply of funds is units. 02:2 O 2:3 O 3:3 O 3: 2

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 1.3P

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