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When Capital Is Accumulated at the Rate That Maximizes Consumption

Question 6

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

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