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It Rains So Much in the Country of Tropicana That

Question 104

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It rains so much in the country of Tropicana that capital equipment rusts out (depreciates) at a much faster rate than it does in the country of Sahara. If the countries are otherwise identical, in which country will the Golden Rule level of capital per worker be higher? Illustrate graphically.

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The Golden Rule leve...

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