Answer to Question #57494 in Finance for Paul
Suppose that k is equal to 225. The fraction of output invested is 60%. The depreciation
rate is 5%. Is the country at its steady-state level of output per worker, above the
steady state, or below the steady state? Explain how you reached your conclusion
rate is 5%. The country at its steady-state level of output per worker, because the economy is of relatively stable size, has stable population and stable consumption that remain at or below carrying capacity.
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