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Consider a small economy with a savings rate of 20%, and a steady per capita income of $200,000, and a population of 4 million people. In addition, this economy’s capital depreciation rate is constant at 10%. Assume there is no population growth and no technological progress. According to the Solow growth model, based on this information, the value of the steady state capital stock in this economy is $__________.

Consider a small economy with a savings rate of 20%, and a steady per capita income of $200,000, and a population of 4 million people. In addition, this economy’s capital depreciation rate is constant at 10%. Assume there is no population growth and no technological progress. According to the Solow growth model, based on this information, the value of the steady state capital stock in this economy is $__________.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Consider a small economy with a savings rate of 20%, and a steady per capita income of $200,000, and a population of 4 million people. In addition, this economy’s capital depreciation rate is constant at 10%. Assume there is no population growth and no technological progress. According to the Solow growth model, based on this information, the value of the steady state capital stock in this economy is $__________.

Please do not input the $ sign. If your answer is $20 please input 20 for your answer.

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