Use the following graph to answer the next four questions.

-If capital is equal to 150,000 and investment is equal to 12,000,then this is a steady state if depreciation is at a rate of:
A) 8%.
B) 12%.
C) 15%.
D) 3%.
E) 4%.

Question

Use the following graph to answer the next four questions.
 
-If capital is equal to 150,000 and investment is equal to 12,000,then this is a steady state if depreciation is at a rate of:
A) 8%. 
B) 12%. 
C) 15%. 
D) 3%. 
E) 4%.

Quizplus · Accepted Answer

Depreciation = InvestmentDepreciation = 12,000Depreciation rate = (Depreciation / Capital) * 100= (12,000 / 150,000) * 100= 8%

Use the Following Graph to Answer the Next Four Questions