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
Correct Answer:
Verified
Correct Answer:
Verified
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