In the Solow model,if f(k)= 2k^0.5,s = 0.25,n = 0.1,and d = 0.4,what is the value of k at equilibrium? A)1 B)2 C)3 D)4

Name: In the Solow model,if f(k)= 2k 0.5 ,s = 0.25,n = 0.1,and d = 0.4,what is the value of k at equilibrium? A)1 B)2 C)3 D)4
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Quizplus · Accepted Answer

The steady-state capital stock is given by k* = (s/n+d) * (f'(k*))^(-1). Plugging in the given values, we get k* = (0.25/0.1+0.4) * (2*k*^(-0.5))^(-1) = 1.

In the Solow Model,if F(k)= 2k0

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