Suppose the following situation exists for an economy: Kt+1 / N = Kt / N.Given this information,we know that
A)saving per worker equals depreciation per worker in period t.
B)saving per worker is less than depreciation per worker in period t.
C)saving per worker is greater than depreciation per worker in period t.
D)the saving rate fell in period t.
E)steady state consumption is equal to the golden rule level of steady state consumption.

Question

Quizplus · Accepted Answer

In a steady state, capital per worker does not change, implying that saving per worker equals depreciation per worker.

Suppose the Following Situation Exists for an Economy: Kt+1