If the Marginal Product of Capital Net Depreciation Equals 8

question 69

Multiple Choice

If the marginal product of capital net depreciation equals 8 percent, the rate of growth of population equals 2 percent, and the rate of labour-augmenting technical progress equals 2 percent, to reach the Golden Rule level of the capital stock, the _____ rate in this economy must be _____.

• A)saving; increased
• B)population growth; decreased
• C)saving; decreased
• D)population growth; increased

---

Definitions:

Probing

The act of exploring or investigating something in detail, often using a physical instrument or tool to examine more closely.

Depression

A mental health disorder characterized by persistent feelings of sadness, loss, or anger that interfere with daily functioning.

Classic Symptom

A classic symptom is a typical or characteristic sign of a condition, disease, or infection that is often cited in diagnostics.

Profound Sadness

A deep and overwhelming sense of despair or unhappiness.