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Using the Solow Model, If, in Time T = 50 dˉ=0.1\bar { d } = 0.1

Question 1

Multiple Choice

Using the Solow model, if, in time t = 50, the capital stock is K50 = 150, investment is I50 = 15, and dˉ=0.1\bar { d } = 0.1 is the depreciation rate, capital accumulation is:


A) ΔK50=5\Delta K _ { 50 } = 5
B) ΔK50=15\Delta K _ { 50 } = - 15
C) ΔK50=15\Delta K _ { 50 } = 15
D) ΔK50=120\Delta K _ { 50 } = 120
E) ΔKS0=0\Delta K _ { S 0 } = 0

Correct Answer:

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