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Question 2 The link between investment and the capital stock. The following table shows data for investment and the capital stock. The data are consistent

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Question 2 The link between investment and the capital stock. The following table shows data for investment and the capital stock. The data are consistent with the following equation. Ki=K-1-8xK ith Period Gross Investment Capital Stock na 100 1 20 115 2 10 11925 40 153-2875 145.62 (a) What is the value of net investment in Period 2? (4.25) (b) In what period is net investment negative? (Period 4, equals -7.668) (c) What is the physical rate of depreciation? ($ = 0.05) (d) What is the value of deprecation in Period 3? (5.9625)

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