Using the Solow Model, If, in Time T = 0 $\bar { d } = 0$

question 9

Multiple Choice

Using the Solow model, if, in time t = 0, the initial capital stock is K₀ = 100, investment is I₀ = 25, and $\bar { d } = 0$ .1 is the depreciation rate, capital accumulation is:

• A) \(\Delta K _ { 0 } = 35\)
• B) \(\Delta K _ { 0 } = - 15\)
• C) \(\Delta K _ { 0 } = 15\)
• D) \(\Delta K _ { 0 } = 0\)
• E) \(\Delta K _ { 0 } = 115\)

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