Country A has a production function per effective worker given by the following expression y = k^0.5. 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?

Answer rating: 100% (QA)

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 ... View the full answer