If d is the depreciation rate and K is the physical capital stock,the amount of investment required to keep the economy in a steady state is given by ________.

Question

Quizplus · Accepted Answer

In a steady state, the amount of investment required to keep the capital stock constant is equal to the depreciation of the capital stock. This is calculated as the depreciation rate (d) multiplied by the physical capital stock (K), hence I = d × K.

If D Is the Depreciation Rate and K Is the Physical