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4. We can express capital stock as a function of time: K(t). a. Express K (t) as the integral of the rate of net investment flow at time t, 1(t). Provide an economic interpretation of your result. b. Suppose I(t) = 3t0.5 and assume K (0) = c. Find the time path of capital.

4. We can express capital stock as a function of time: K(t). a. Express K (t) as the integral of the rate of net investment flow at time t, 1(t). Provide an economic interpretation of your result. b. Suppose I(t) = 3t0.5 and assume K (0) = c. Find the time path of capital.

Microeconomics: Private and Public Choice (MindTap Course List)
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter14: Investment, The Capital Market, And The Wealth Of Nations
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4. We can express capital stock as a function of time: K(t). a. Express K (t) as the integral of the rate of net investment flow at time t, I(t). Provide an economic interpretation of your result. b. Suppose I(t) = 3t0.5 and assume K(0) = c. Find the time path of capital.
Transcribed Image Text:4. We can express capital stock as a function of time: K(t). a. Express K (t) as the integral of the rate of net investment flow at time t, I(t). Provide an economic interpretation of your result. b. Suppose I(t) = 3t0.5 and assume K(0) = c. Find the time path of capital.
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