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Page of 3 O Question 3 (10 points): Suppose two countries A and B have the same structure, except that country A has a larger
Page of 3 O Question 3 (10 points): Suppose two countries A and B have the same structure, except that country A has a larger savings rate (s4 > SB). Both countries' stocks of capital per capita are currently the same and smaller than their steady-state levels. That is, denoting current stock of capital per capita by k and steady-state stock of capital per capita by kss, the current scenario has KA = kB
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