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A country reports a savings rate =0.25 , a depreciation rate of physical capital of labor =0.05 , a labor population growth rate of 0.01
A country reports a savings rate
=0.25
, a depreciation rate of physical capital of labor
=0.05
, a labor population growth rate of 0.01 , a technology growth rate = 0.02 , and a physical capital intensity (alpha)
=0.1
. Based on the Solow Model, the savings rate that will maximize consumption per labor is\ a) 0.25 or
25%
\ b) 0.07 or
7.0%
\ c) 0.1 or
10%
\ d) 0.32 or
32%
A country reports a savings rate =0.25, a depreciation rate of physical capital of labor =0.05, a labor population growth rate of 0.01 , a technology growth rate = 0.02 , and a physical capital intensity (alpha) =0.1. Based on the Solow Model, the savings rate that will maximize consumption per labor is a) 0.25 or 25% b) 0.07 or 7.0% c) 0.1 or 10% d) 0.32 or 32%
A country reports a savings rate
=0.25
, a depreciation rate of physical capital of labor
=0.05
, a labor population growth rate of 0.01 , a technology growth rate = 0.02 , and a physical capital intensity (alpha)
=0.1
. Based on the Solow Model, the savings rate that will maximize consumption per labor is\ a) 0.25 or
25%
\ b) 0.07 or
7.0%
\ c) 0.1 or
10%
\ d) 0.32 or
32%
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