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6. Consumption is equal to output minus investment. In the Solow model with no technological progress, what is the savings rate that maximizes steady state
6. Consumption is equal to output minus investment. In the Solow model with no
technological progress, what is the savings rate that maximizes steady state
consumption per worker? Show this point in a diagram describing the model. If the
economy's actual savings rate is below this savings rate, then explain the transition
process to reach the above-mentioned steady state? Will this economy continue to
experience faster economic growth forever with the increase in savings rate?
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