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Ao9 Ao9
wrote...
Posts: 1908
Rep: 1 0
8 years ago
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.
Textbook 
Macroeconomics

Macroeconomics


Edition: 5th
Author:
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GordisGordis
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Posts: 1906
8 years ago
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Ao9 Author
wrote...
8 years ago
You're sharp, thanks!
wrote...
8 years ago
Glad to help...
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