In the Solow Growth Model with Population Growth, but No

question 85

Multiple Choice

In the Solow growth model with population growth, but no technological progress, if in the steady state the marginal product of capital equals 0.10, the depreciation rate equals 0.05, and the rate of population growth equals 0.03, then the capital per worker ratio ____ the Golden Rule level.

• A) is above
• B) is below
• C) is equal to
• D) will move to

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