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6. A firm invests I, in its capital stock in period t where It = 10(1 + 8)-' and where lo and g are positive
6. A firm invests I, in its capital stock in period t where It = 10(1 + 8)-' and where lo and g are positive constants. If a portion, 8, of the capital stock depreciates each period, write out the difference equation for the capital stock and solve it, given that the initial value of the capital stock is Ko
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