Assume that a country's production function isY=AK^0.3L^0.7. The ratio of capital to output is 3, the growth rate of output is 3 percent, and the depreciation rate is 4 percent. Capital is paid its marginal product.

a.

What is the marginal product of capital in this situation?

b.

If the economy is in a steady state, what must be the saving rate?

c.

What is the marginal product of capital if the economy reaches the Golden Rule level of capital?

d.

What must the saving rate be to achieve the Golden Rule level of capital?