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When Capital Is Accumulated at the Rate That Maximizes Consumption

Question 2

Multiple Choice

When capital is accumulated at the rate that maximizes consumption per worker in the steady state, the marginal product of capital is equal to the


A) savings rate plus the population growth rate.
B) savings rate divided by the marginal product of labour.
C) depreciation rate plus the savings rate.
D) population growth rate plus the depreciation rate.
E) consumption per worker plus the population growth rate.

Correct Answer:

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