Lecture 3 20

Lecture 3 20 - Since I = sY I K d K + − = ) 1 ( ' sY K d...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
A5: The capital stock of the economy The capital stock of the economy, K, can increase because of investment. It can also decrease because of depreciation. Let d be the rate of depreciation:
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Since I = sY I K d K + − = ) 1 ( ' sY K d K + − = ) 1 ( ' K’ is the capital stock in the next period, and K is the current capital stock...
View Full Document

Ask a homework question - tutors are online