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This question is about a new economy called Pomefiore.

Its production function is 2 times the square root of k (the same as 2k^1/2) and its depreciation rate is 3 percent. Its population grows at a rate of 4 percent per year, and technology is advancing at a rate of 1 percent annually. Its residents consume 90% of each additional dollar of income.

Find the economy's steady state level of capital (k*), carefully following all numeric instructions.