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Using the Solow Model, If, in Time T = 0 dˉ=0\bar { d } = 0

Question 9

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Using the Solow model, if, in time t = 0, the initial capital stock is K0 = 100, investment is I0 = 25, and dˉ=0\bar { d } = 0 .1 is the depreciation rate, capital accumulation is:


A) ΔK0=35\Delta K _ { 0 } = 35
B) ΔK0=15\Delta K _ { 0 } = - 15
C) ΔK0=15\Delta K _ { 0 } = 15
D) ΔK0=0\Delta K _ { 0 } = 0
E) ΔK0=115\Delta K _ { 0 } = 115

Correct Answer:

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