If Each Unit of Capital Lasts an Average of 25

question 9

Multiple Choice

If each unit of capital lasts an average of 25 years,then for an economy with a capital stock worth 5 times the annual GDP,approximately what percentage of output must be set aside to replace depreciation?

• A) 5%
• B) 10%
• C) 20%
• D) 25%
• E) 30%

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