If the Marginal Product of Capital Net Depreciation Equals 8

question 91

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 labor-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) depreciation; decreased
• D) total output growth; decreased

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