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Imagine an Economy with Production Function Y = F(K)= and 400

Question 79

Multiple Choice

Imagine an economy with production function Y = F(K) = and 400 units of capital.If the fraction of output invested in new capital is = 0.2,how much new capital will be created in the next period?


A) 2
B) 4
C) 6
D) 8

Correct Answer:

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