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Letting Y Stand for Total Output, K for Capital, I

Question 15

Multiple Choice

Letting Y stand for total output, K for capital, I for investment, and ? for the rate of depreciation, the change "?" in the stock of capital in the economy is represented in the Solow growth model by:


A) ?K = I
B) ?K = I - ?K
C) ?K = Y - ?K
D) ?K = I ? ?Y

Correct Answer:

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