Question: Assume a Cobb Douglas production function where the capital share of output is 50%. If the savings rate is 45% and capital depreciate at 5%,

Assume a Cobb Douglas production function where the capital share of output is 50%. If the savings rate is 45% and capital depreciate at 5%, what is the steady - state level level of consumption?

A. 9

B. 81

C. 6.5

D. 4.95

E. 10.25

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