X = KN M = 4$ : w = 1 $ /N : pK = 1 $ /K

It = Kt+1 - K t + Kt

Knowing that Kt is equal to (i) X /, (ii) Z /v , and (iii) R /r, write out current investment levels as (i) a share of total income, (ii) a share of total gross profits, and (iii) a share of net profits. Identify the common relation in the numerator of each share. What are the conditions for this to converge with the neoclassical constant saving rate model?