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The Formula for the Steady-State Ratio of Capital to Labor

Question 71

Multiple Choice

The formula for the steady-state ratio of capital to labor (k*) with population growth at rate n but no technological change, where s is the saving rate, is s:


A) divided by the sum of the depreciation rate plus n.
B) multiplied by the sum of the depreciation rate plus n.
C) divided by the product of f(k*) and the sum of the depreciation rate plus n.
D) multiplied by f(k*) divided by the sum of the depreciation rate plus n.

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