Question: Explain what an increase in the depreciation rate, d, means. Using a graph like Figure 11-3, explain the effect of an increase in the depreciation

Explain what an increase in the depreciation rate, d, means. Using a graph like Figure 11-3, explain the effect of an increase in the depreciation rate on the steady-state capital-labor ratio and steadystate income per person. Again using a graph like Figure 11-3, explain how the savings rate must change in order for a rise in the depreciation rate to have no effect on the steady-state capital-labor ratio and steady-state income per person. Finally, discuss why your explanations make intuitive sense.

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