Nilfgaard is a closed economy with no government sector. The country does not exhibit any technological progress. Existing capital stock depreciates at a rate of 5% per year (6= 0.05) and people save 80% of their incomes (s = 0.8). Nilfgaard's population growth rate (n) is 0.05. If income per worker = 100 and capital per worker = 1 000, then the change in capital stock equals Select one: O a -20 and k is below the steady state level of capital per worker. O b. 0 and k is at the steady state level of capital per worker. O< 20 and k is below the steady state level of capital per worker. Od -20 and k is above the steady state level of capital per worker.

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(4).

Nilfgaard is a closed economy with no government sector. The country does not exhibit any technological
progress. Existing capital stock depreciates at a rate of 5% per year (6= 0.05) and people save 80% of their
incomes (s = 0.8). Nilfgaard's population growth rate (n) is 0.05. If income per worker = 100 and capital per
worker = 1 000, then the change in capital stock equals
Select one:
O a
-20 and k is below the steady state level of capital per worker.
Ob
0 and k is at the steady state level of capital per worker.
Oc
20 and k is below the steady state level of capital per worker.
Od
-20 and k is above the steady state level of capital per worker.
Transcribed Image Text:Nilfgaard is a closed economy with no government sector. The country does not exhibit any technological progress. Existing capital stock depreciates at a rate of 5% per year (6= 0.05) and people save 80% of their incomes (s = 0.8). Nilfgaard's population growth rate (n) is 0.05. If income per worker = 100 and capital per worker = 1 000, then the change in capital stock equals Select one: O a -20 and k is below the steady state level of capital per worker. Ob 0 and k is at the steady state level of capital per worker. Oc 20 and k is below the steady state level of capital per worker. Od -20 and k is above the steady state level of capital per worker.
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