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If the Rate of Investment Exceeds the Rate Recommended by the Golden

Question 24

Multiple Choice

If the rate of investment exceeds the rate recommended by the Golden Rule,


A) the economy will not reach a steady state
B) long run consumption will fall below its Golden-Rule level
C) the economy will experience sustained long run growth
D) the marginal product of capital will increase
E) the rate of depreciation will speed up

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