Which of the following equations captures the aggregate capital stock
Which of the following equations captures the aggregate capital stock of the economy in this year, Know?
A) Know = (1 – depreciation rate) × Klastyear + I B) Know = (1 + depreciation rate) × Klastyear + I
C) Know = (1 – depreciation rate) × Klastyear × I D) Know = (1 – depreciation rate) × Klastyear – I
The depreciation rate of capital in an economy is 10%. The investment on capital in the current year is $500.
ANSWER
A
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