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May you explain well and into details step by step, thanks ! . A rm has a capital stock in period 0 of K0 and

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May you explain well and into details step by step, thanks !

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. A rm has a capital stock in period 0 of K0 and it invests a constant amount I that augments the capital stock at the end of each period. However, a portion 6 of the capital stock depreciates each period. Write out the difference equation for the capital stock and solve it

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