Intangible forms of capital (like software) tend to last less than other forms of capital (for exam- ple relative to structures). Suppose an economy transitions more and more of its capital stock to intangibles. Show what changes (if any) occur to the diagram studied in Week 2 to explain the equilibrium level for K

Answer rating: 100% (QA)

When an economy transitions to a more intangible capital stock we expect to see changes in the following aspects 1 Depreciation Rate Intangible assets ... View the full answer