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Country A has a production function per effective worker given by the following expression y = k 0.5 . The savings rate of this country

Country A has a production function per effective worker given by the following expression y = k0.5. The savings rate of this country is 15 percent, the depreciation rate is 4 percent, the population growth rate is 4 percent, and the rate of technological change is 2 percent.

In the Golden-rule steady-state of this economy, what is the savings rate?

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The savings rate in the Goldenrule steadystate of this economy is not 15 the actual savings rate but rather higher Heres why The Golden rule suggests ... blur-text-image

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