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Economic research finds that some developing countries may depreciate their capital stocks much faster than the U.S. economy. Consider the Solow growth model that we

Economic research finds that some developing countries may depreciate their capital stocks much faster than the U.S. economy. Consider the Solow growth model that we have studied in class. Specifically, capital per capita in the model evolves as kt 1 = 1 1 n kt sAF(kt , l) 1 n What are the effects of higher capital depreciation rate () on steady state capital per capita (k ), output per capita (y ), and consumption per capita (c )? In answering this question, use the diagram that determines k

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