Question: 30. Please attach w solution Country A is a Solow economy with the following production function F(K, L) = AKL]-, with A and L exogenously

30. Please attach w solution

Country A is a Solow economy with the following production function F(K, L) = AKL]-, with A and L exogenously given. Assume the capital share in output is equal to 1/3, the saving rate is 20% and the depreciation rate is 10%. What happens to the steady state level of consumption if depreciation rate drops to 5%? O It decreases O It increases O It stays constant O The effect of the change in depreciation rate on steady-state consumption is ambiguous

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