The steady-state level of capital occurs when the change in the capital stock (∆k) equals:
A)0.
B)the saving rate.
C)the depreciation rate.
D)the population growth rate.

Question

Quizplus · Accepted Answer

The steady-state level of capital is reached when the change in the capital stock (∆k) is zero, meaning that investment equals depreciation, and there is no net change in capital.

The Steady-State Level of Capital Occurs When the Change in the Capital