In the Solow model, if f(k) = 2k^0.5, s = 0.25, n = 0.05, and d = 0.2, what is the value of k at equilibrium?

In the Solow model, if f(k) = 2k^0.5, s = 0.25, n = 0.05, and d = 0.2, what is the value of k at equilibrium?



a. 0.25
b. 2.25
c. 6.25
d. 4.00

Answer: D


FIN 201

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