IGoldeu Rule Suppose you have invented some strange mindcontrol device that allows you to change how much every one saves. You can't do anything else: except to manipulate their feelings about whether buffalo wings should be accompanied by ranch dressing. The population growth rate is 0: labor is l and pro duction is given by far): k\".5. The capital per 3am depreciates at rate 0.1 1. If you set the savings rate to 0 or to 1: what is the consumption per capita in the steady state? 2. Plot outconsumption per mi you set the savings rate to 0.1: 0.25: 0.5 = 0.75: 0.9. That is: calculate the steady state capital per capita for each of these savings rates: then compute the consumption and then put that on a graph. What savings rate corresponds to the most consumption per W? 3. Suppose the savings rate was 0.?5 and capital per pawn in steady state. Then the savings rate goes to the golden rule level: whathappens to conmimmediately: in the rst peliodafter the change. Is consumption in this rst period higher or lower than its steady state? 4. Suppose the savings rate was 0.25 and capital per pawn in steady state. Then the savings rate goes to the golden rule level: whathappens to conmimmediately: in the rst peliodafter the change. Is consumption in this rst period higher or lower than its steady state