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For an Economy with a Cobb-Douglas Production Function in Which

Question 23

Multiple Choice

For an economy with a Cobb-Douglas production function in which 1/3 of income goes to capital and 2/3 of income goes to labor,and which has a 6% rate of depreciation,the Golden Rule investment rate is


A) 1/3
B) 2/3
C) 6%
D) 2%
E) 4%

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