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Using the Solow Model, If, in Time T = 0 Δ\Delta

Question 12

Multiple Choice

Using the Solow model, if, in time t = 0, the initial capital stock is K0 = 100, investment is I0 = 25, and  Using the Solow model, if, in time t = 0, the initial capital stock is K<sub>0</sub> = 100, investment is I<sub>0</sub> = 25, and   .1 is the depreciation rate, capital accumulation from period 0 to period 1 is: A)   \Delta  K<sub>1 </sub><sub> </sub>=<sub> </sub>35. B)   \Delta  K<sub>1 </sub>=-15. C)   \Delta  K<sub>1 </sub>=<sub> </sub>15. D)   \Delta  K<sub>1 </sub>=0. E)   \Delta  K<sub>1 </sub>=<sub> </sub>115.  .1 is the depreciation rate, capital accumulation from period 0 to period 1 is:


A) Δ\Delta K1 = 35.
B) Δ\Delta K1 =-15.
C) Δ\Delta K1 = 15.
D) Δ\Delta K1 =0.
E) Δ\Delta K1 = 115.

Correct Answer:

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