McDowell Corporation spends the same amount on capital expenditures each year. All capital expenditures have an estimated useful life of 10 years. Over time, which of the following is most likely true?

A. Capital expenditures and depreciation expense converge

B. PP&E steadily increases to perpetuity

C. PP&E approaches zero

D. Capital expenditures > depreciation expense

Consider an economy where government expenditures are 10 and total tax revenues are 10. the supply of labor is fixed at 125 and the supply of capital is fixed at 8. the economy is described by the following equations. y k to the power of 1 divided by 3 end exponent l to the power of 2 divided by 3 end exponent c 2.5 + 0.75 ( y - t ) i 10 - 0.5 r the level of private savings is