If $\bar { s }$ is the saving rate, $F \left( K _ { t } , \bar { L } \right)$ is the production function, and $\bar d$ is the depreciation rate, the growth of capital can be expressed as $\Delta K _ { t + 1 } = \bar { s } F \left( K _ { t } , \bar { L } \right) - \bar { d } K _ { t }$ .

Question

If $\bar { s }$  is the saving rate, $F \left( K _ { t } , \bar { L } \right)$  is the production function, and $\bar d$  is the depreciation rate, the growth of capital can be expressed as  $\Delta K _ { t + 1 } = \bar { s } F \left( K _ { t } , \bar { L } \right) -  \bar { d } K _ { t }$  .

Quizplus · Accepted Answer

The growth of capital is determined by the savings invested in production minus the depreciation of existing capital.

If sˉ\bar { s }sˉ Is the Saving Rate F(Kt,Lˉ)F \left( K _ { t } , \bar { L } \right)F(Kt​,Lˉ)

If $\bar { s }$ Is the Saving Rate $F \left( K _ { t } , \bar { L } \right)$