. For this question, please use the assumptions of the variation of the Solow model we used in this section; that is, h = = 0. Also, assume that A = 1, = 1/3, = .15, the real interest rate is 5%, and the population growth rate is .02.

a. What would be the steady-state level of capital?

b. If capital mobility then occurred, what would be the steady state level of capital?

c. As a result of capital mobility, what happens to the optimal amount of capital?