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1) consumption is equal to output minus investment: c=(1-s)y. n the context of the Solow model with no technological progress, what is the savings rate
1) consumption is equal to output minus investment: c=(1-s)y. n the context of the Solow model with no technological progress, what is the savings rate that maximizes steady-state consumption per worker? what is the marginal product of capital in this steady state? show this point in a Solow diagram. be sure to draw the production function on the diagram, and show consumption and saving and a line indicating the marginal product of capital.
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