The following graph represents the economy of the Banana Republic with a population growth rate of 2% and capital depreciation rate of 8%.

1. The saving rate at the steady state in this economy is

2.How much investment is needed to keep the capital (K) at a constant level?

3. At the steady state the growth rate of capital in this economy is

4. How much investment is needed to keep the economy at the steady state?

a.0.08k

b.0.0k

c.0.15k

d.0.10k

5. At any point to the left of the vertical line "a" investment is

6. At any point to the right of the vertical line "a" investment is

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