The golden-rule capital stock (k**) corresponds to

Question

Quizplus · Accepted Answer

Option A is correct as k** is the amount of capital that leads to the highest possible level of steady-state consumption. 
Option B is correct since at k**, the marginal product of capital is equal to the depreciation rate of capital plus the population growth rate (n + d), leading to an equilibrium in which no additional investment is required to maintain steady-state consumption per capita. 
Option C is also correct because it is the point on the production function where the slope of f (k) is equal to (n + d). Therefore, D is the correct answer as all of the above are true.

The Golden-Rule Capital Stock (K**) Corresponds to