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Suppose we are currently at a level of steady-state capital stock per-worker where MPK < 6k. Modifying the savings rate to achieve the golden-rule level
Suppose we are currently at a level of steady-state capital stock per-worker where MPK < 6k. Modifying the savings rate to achieve the golden-rule level of k*, which of the following is true? consumption will firstly decrease then increase consumption will decrease consumption will firstly increase then decrease consumption will increase
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