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1. Suppose output per worker is, the saving rate is 30%, and the depreciation rate is 10%. If the amount of capital per worker is
1. Suppose output per worker is, the saving rate is 30%, and the depreciation rate is 10%. If the amount of capital per worker is currently 9, what will it be next period?
If the steady-state capital stock is currently below the golden rule level, this means that the marginal product of capital is too __(high or low?)__ and the saving rate should be _(raised or lowered?)___.
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