Which of the following equations captures the aggregate capital stock of the economy in this year, Know?
A) Know = (1 - depreciation rate) × Klastyear + I B) Know = (1 + depreciation rate) × Klastyear + I
C) Know = (1 - depreciation rate) × Klastyear × I D) Know = (1 - depreciation rate) × Klastyear - I
The depreciation rate of capital in an economy is 10%. The investment on capital in the current year is $500.
A
Economics