At the end of the future period, in the real intertemporal model with

At the end of the future period, in the real intertemporal model with investment

A) the firm’s capital becomes useless and is thrown away.
B) the firm’s capital is used to produce more capital for the distant future.
C) the firm can convert capital one-for-one into consumption goods.
D) the firm’s capital is converted into labor.

 

ANSWER

C

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