In the Solow model, the equation of capital accumulation is:
A) $\Delta K _ { t } = I _ { t } - \bar { d } K _ { t }$
B) $K _ { t + 1 } = K _ { t } + I _ { t } - \bar { d } K _ { t }$
C) $K _ { t + 1 } = K _ { t } + I _ { t } + \bar { d } K _ { t }$
D) $K _ { t + 1 } = K _ { t } + d K _ { t } - I _ { t }$
E) $K _ { t } + I _ { t } = K _ { t + 1 }$

Question

Quizplus · Accepted Answer

The Answer is B

In the Solow Model, the Equation of Capital Accumulation Is ΔKt=It−dˉKt\Delta K _ { t } = I _ { t } - \bar { d } K _ { t }ΔKt​=It​−dˉKt​

In the Solow Model, the Equation of Capital Accumulation Is $\Delta K _ { t } = I _ { t } - \bar { d } K _ { t }$