In the Long Run, If the Marginal Product of Capital $I _ { t } = \bar { a } _ { i }$

question 82

Multiple Choice

In the long run, if the marginal product of capital equals the real interest rate, investment is given by:

• A) \(I _ { t } = \bar { a } _ { i }\)
• B) \(I _ { t } = \bar { a } _ { i } Y _ { t }\)
• C) \(I _ { t } = \bar { a } _ { i } \bar { Y } _ { t }\)
• D) \(l _ { t } = \tilde { Y } _ { t } / \bar { a } _ { i }\)
• E) \(I _ { t } = \left[ \bar { a } _ { i } - \bar { b } \left( R _ { t } - \bar { r } \right) \right] \tilde { Y } _ { t }\)

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