Question:
For the per capita production function y = K0.5; what is the level of savings rate at which the consumption per capita is maximised at steady state? Assume depreciation (δ) = 0.1 and no population growth.
For the per capita production function y = K0.5; what is the level of savings rate at which the consumption per capita is maximised at steady state? Assume depreciation (δ) = 0.1 and no population growth.
Updated On: Mar 11, 2024
- 10%
- 20%
- 40%
- 50%
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The Correct Option is D
Solution and Explanation
The correct option is(D): 50%
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