Business, 06.05.2020 02:20 Queenvalentin

Suppose an economy starts the year with $100 million in capital, and during the course of a year, it adds $20 million of gross investment. Economists estimate that the depreciation rate for this economy is 9% per year. Instructions: Enter your answers as a whole number. a. Calculate depreciation and net investment for this economy. Depreciation: $ 9 million Net investment: $ 11 million b. Now calculate the amount of next year's beginning capital stock for this economy. $ 11 million

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Suppose an economy starts the year with $100 million in capital, and during the course of a year, it...