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Firms discount future profits at the interest rate r because

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Firms discount future profits at the interest rate r because

Firms discount future profits at the interest rate r because
A) it is the same rate as for households.
B) Ricardian equivalence holds.
C) it is the interest rate on their debt.
D) it has to equal the marginal productivity of capital in equilibrium.

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Macroeconomics

Edition: 5^th

Author: Williamson

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You're sharp, thanks!

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