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6. For this question, please use the assumptions of the variation of the Solow model we used in this section; that is, h = 5
6. For this question, please use the assumptions of the variation of the Solow model we used in this section; that is, h = 5 = 0. Also, assume that A = 1, o = U3, v = .15, the real interest rate is 5%, and the population growth rate is .02. a. What would be the steadystate level of capital? (10 points} lo. If capital mobility then occurred, what would be the steadyr state level of capital? (it) points} :2. As a result of capital mobility, what happens to the optimal amount of capital? {10 points}
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