Problem
1. Identify and give examples of the three components of investment spending.
2. What is the user cost of capital? What variables determine this cost and how does a change in each variable affect it?
3. Explain how the user cost of capital and the expected marginal product of capital together determine the desired level of capital.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.