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Business, 09.04.2021 04:20, BallerAlert1644
If an economy is in a steady state with no population growth or technological change, and the marginal product of capital is less than the depreciation rate:
A) the economy is following the Golden Rule.
B) steady-state consumption per worker would be higher in a steady state with a lower saving rate.
C) steady-state consumption per worker would be higher in a steady state with a higher saving rate.
D) the depreciation rate should be decreased to achieve the Golden Rule level of consumption per worker.
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Answers: 3
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If an economy is in a steady state with no population growth or technological change, and the margin...
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