Which of the following changes would bring the U.S. capital stock, currently below the Golden Rule level, closer to the steady-state, consumption-maximizing level?
A) increasing the population growth rate
B) increasing the rate of capital depreciation
C) increasing the rate of technological progress
D) increasing the saving rate

Question

Quizplus · Accepted Answer

Increasing the saving rate would result in an increase in investment, which would increase the capital stock and bring it closer to the steady-state, consumption-maximizing level.

Which of the Following Changes Would Bring the U