Assume a production function is given by . If
And
, the depreciation rate is
, and the saving rate is
, the steady-state level of capital is about:
A) 0.1.
B) 2.5.
C) 1.6.
D) 8.0.
E) 0.6.

Question

Assume a production function is given by  . If 
And 
, the depreciation rate is 
, and the saving rate is 
, the steady-state level of capital is about:
A) 0.1. 
B) 2.5. 
C) 1.6. 
D) 8.0. 
E) 0.6.

Quizplus · Accepted Answer

The Answer of Assume a production function is given by  . If 
And 
, the depreciation rate is 
, and the saving rate is 
, the steady-state level of capital is about:
A) 0.1. 
B) 2.5. 
C) 1.6. 
D) 8.0. 
E) 0.6.

Assume a Production Function Is Given by