1.3. Of course, no country makes only investment goods like machines, equipment, and computers. They also make...

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1.3. Of course, no country makes only investment goods like machines, equipment, and computers. They also make consumer goods.

Let's consider a case where the countries in question 1 devote 25 % of GDP to making investment goods (so -y, gamma, = 0.25).

What is the amount of savings in these three countries? In which countries is Investment

< Depreciation? When is Investment >

Depreciation?

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Modern Principles Macroeconomics

ISBN: 124428

2nd Edition

Authors: Tyler Cowen ,Alex Tabarrok

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