Exercise 21.2. Consider the economy in Section 21.1. (1) Show that in equation (21.5), K (t + 1) is everywhere increasing in K (t) and that there exists some K¯ such that the capital stock will grow over time when K (t) > K¯ . (2) Can there be more than one steady state level of capital stock in this economy? If so provide an intuition for this type of multiplicity. (3) Provide sufficient conditions for the steady state level of capital stock, K∗, to be unique. Show that in this case K (t + 1) > K (t) whenever K (t) > K∗.