If s is the proportion of capital stock saved and invested per year and * is the capital stock depreciation rate, then capital stock (K) will change according to which of the following formulas?
A) Kt+1 = Kt + (s x Kt ) - ( x Kt )
B) Kt+1 = Kt + (s x Yt ) + ( x Kt )
C) Kt+1 = Kt + (s x Kt ) + ( x Kt )
D) Kt+1 = Kt + (s x Yt ) - ( x Kt )
Correct Answer:
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