The rate of saving that produces the maximum level of consumption per capita in the long-run steady state is called the:

Question

Quizplus · Accepted Answer

The term "golden rule of saving" refers to the rate of saving that maximizes consumption per capita in the long-run steady state. This means that there is an optimum rate of saving that leads to the highest possible consumption level for the economy in the long run.

The Rate of Saving That Produces the Maximum Level of Consumption