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Solve clearly Q4. The increase in capital (K) with respect to increases in invest- ment (1) in country A is given by dKa 100 dla

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Q4. The increase in capital (K) with respect to increases in invest- ment (1) in country A is given by dKa 100 dla (a) What is the additional capital accumulated as investment increases from 4 to 16? [5 points] In a neighbouring country B the change is given by dKb 100 -1- See Next Page 4SSMN901 (b) They also increase investment from 4 to 16. Will they ac- cumulate more capital? [5 points]

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