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The Golden Rule a) Introduce and explain the golden rule in financial assets b) Assume that the real return is 4%, economic growth is 5%

The Golden Rule

a) Introduce and explain the "golden rule" in financial assets

b) Assume that the real return is 4%, economic growth is 5% and that there is perfect competition in the market. We also assume no population growth,5% technological development and 5% depreciation. What does this mean for the comparison of the golden rulewith steady state capital stock in long-run equilibrium)? Explain the result

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