Assume an Endogenous Growth Model with Labor Augmenting Technology

Multiple Choice

Assume an endogenous growth model with labor augmenting technology.The production function is Y = F(K,AN) with A = 2(K/N) , so y = 2k.If the savings rate is s = 0.05 and there is neither population growth nor depreciation of capital, what is the growth rate of output?

A) 0%
B) 2) 5%
C) 5%
D) 10%
E) it cannot be determined