4 3. Consider the Solow growth model with the production function, Y = F (K, L) = Ã × K + B × L where Ã >0 and B > 0. Denote k = K/L. Let d denote the depreciation rate and 5 the saving rate. There exists apositive steady state (with k>0) :a. Alwaysb.NeverC.If Ā > B.d. If d > SĀ.e.If d < 5

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3. Consider the Solow growth model with the production function, Y = F (K, L) = Ã × K + B x L where Ã > 0 and B > 0. Denote k = K/L. Let à denote the depreciation rate and 5 the saving rate. There exists a positive steady state (with k>0): a. Always b. Never c. If Ā> B. d. If d > 5Ā. e. If d < 5

3. Consider the Solow growth model with the production function, Y = F (K, L) = Ã × K + B x L where Ã > 0 and B > 0. Denote k = K/L. Let à denote the depreciation rate and 5 the saving rate. There exists a positive steady state (with k>0): a. Always b. Never c. If Ā> B. d. If d > 5Ā. e. If d < 5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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