Consider the basic Solow model with production function Y = K"0.25 /V0-75, saving rate of 20% and depreciation rate of 10%. Which of the following is true? The saving rate is: O less than the *golden rule' saving rate, hence the economy is saving too much O less than the *golden rule' saving rate, hence the economy is saving too little greater than the *golden rule' saving rate, hence the economy is saving too much O greater than the *golden rule' saving rate, hence the economy is saving too little 2 According to the Mundell-Fleming model, which of the following policy configurations is likely to be unsustainable for a small open economy? O capital controls, independent domestic monetary policy, fixed exchange rate O capital controls, independent domestic monetary policy, floating exchange rate O perfect capital mobility, independent domestic monetary policy, fixed exchange rate O perfect capital mobility, independent domestic monetary policy, floating exchange rate