The user cost of capital is given by the following formula, where p K is the real price of capital goods, did the depreciation rate, and ris the expected real interest rate.
(a) uc =(r + d)/p
K
(b) uc = p
K
/(r + d)
(c) uc = d p
K
/r
(d) uc =(r + d)p
K
Answer: D
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