Answered: Suppose an economy has production…

Suppose an economy has production function F (K) = 10√K. Suppose saving rate, s, is 0.1 and depreciation rate, &, is also 0.1. Suppose further that I = sY and Kỵ = 1. What is K₁ ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose an economy has production function F (K) = 10√K. Suppose saving rate, s, is 0.1 and
depreciation rate, &, is also 0.1. Suppose further that I = sY and K
1. What is K₁ ?
O
1.9
1.7
2.1
2.0
=

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