The equation for the marginal productivity of capital is given by:Real Interest Rate (%)22.5-MPK := 1,000 - 1OK20.0-The price of a unit of capital is 2,000. The rate of depreciation is: 10% per year. The real rate of interest is: 15% per year.17.5-If the existing level of capital K, is equal to 50 units, what is the level of gross investment?15.0-I4 = 5 (enter your answer rounded to one decimal place).12.5-If the real interest rate changes to 5%, what will be the new level of investment (holding the rate of depreciation, the price of capital, the amount of10.0-existing capital andMPKconstant)?7.5-I'; = |(enter your answer rounded to one decimal place).5.0-2.5-0.0+0.010.020.030.040.050.0Investment (units)

Given: The marginal productivity of capital is: MPK = 1,000 - 10K The price of a unit of capital is…

The equation for the marginal productivity of capital is given by: MPK = 1,000 - 10K The price of a unit of capital is 2,000. The rate of depreciation is: 10% per year. The real rate of interest is: 15% per year. If the existing level of capital K, is equal to 50 units, what is the level of gross investment? 4= 5 (onter your answor rounded to one decimal place). If the real interest rate changes to 5%, what will e the new level of investment (holding the rate of depreciation, the price of capital, the amount of existing capital and MPK' constant)? = (ontor your answor rounded to one decimal place).

The equation for the marginal productivity of capital is given by: MPK = 1,000 - 10K The price of a unit of capital is 2,000. The rate of depreciation is: 10% per year. The real rate of interest is: 15% per year. If the existing level of capital K, is equal to 50 units, what is the level of gross investment? 4= 5 (onter your answor rounded to one decimal place). If the real interest rate changes to 5%, what will e the new level of investment (holding the rate of depreciation, the price of capital, the amount of existing capital and MPK' constant)? = (ontor your answor rounded to one decimal place).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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