If the production function is y = 2k1/2 and δ = 0.1, then the Golden Rule level is reached when k is:200.150.120.100.

Question

If the production function is y = 2k1/2 and δ = 0.1, then the Golden Rule level is reached when k is:200.150.120.100.
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Solution 1

The Golden Rule level of capital is the level of capital that maximizes consumption in the steady state. It is determined by setting the change in capital (investment minus depreciation) equal to zero and solving for k.

Given the production function y = 2k^1/2 and the depreciation rate δ = 0.1, we Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

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