Use a Solow Swan diagram to show the circumstances in which a country might prefer to invest $100 in new capital equipment rather than $100 on research and development that would result in using the existing capital stock more efficiently.

Provide a detailed and thorough explanation

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To illustrate the circumstances in which a country might prefer to invest 100 in new capital equipment rather than 100 on research and development RD to use the existing capital stock more efficiently ... View the full answer