Problem
Start by drawing a given country's steady state, using only the investment and the depreciation and capital dilution curves. On the same graph do the following:
a) Consider the effects of an immigration wave of individuals that exhibit both higher saving and fertility rates than the current population. Draw the new curves.
b) Identify the new steady state capital-labor ratio level. Is it necessarily higher or lower than the previous steady state?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.