Write the tax-adjusted user cost of capital as a function

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Reference no: EM13191824

MPK=20-.02K
d(depreciation)=.2
Kt(current capital stock)=900
Pk(price of one unit of capital)=1
tax rate=.15

Write the tax-adjusted user cost of capital as a function of the real interest rate(r). Also write the desired future capital stock and desired investment as functions of (r).

Reference no: EM13191824

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