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The equation of motion for capital (K) is given as: tK=IoKWhereIo=800=0.025K(0)=300 Where Io represent the constant level of investment and represents rate of depreciation of

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The equation of motion for capital (K) is given as: tK=IoKWhereIo=800=0.025K(0)=300 Where Io represent the constant level of investment and represents rate of depreciation of capital. a) Find the capital stock at time t[K(t)] b) Draw a graphical sketch of the capital time path c) Explain the dynamic stability of the time path. The equation of motion for capital (K) is given as: tK=IoKWhereIo=800=0.025K(0)=300 Where Io represent the constant level of investment and represents rate of depreciation of capital. a) Find the capital stock at time t[K(t)] b) Draw a graphical sketch of the capital time path c) Explain the dynamic stability of the time path

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