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(b)What will be the effect of the increased capital accumulation on the marginal product of capital? On the rental price of capital? (c)If we assume
- (b)What will be the effect of the increased capital accumulation on the marginal product of capital? On the rental price of capital?
- (c)If we assume a Cobb-Douglas production function, what will be the effect of increased capital accumulation on the share of income that goes to capital?
(d) Do you think your answer to part (c) is reasonable? Do you think Thomas Piketty would think it a reasonable conclusion? What do you think could happen?
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