Which one of the following is not a correct interpretation of the Golden Rule of Accumulation? It is that capital per person at which
A. Savings per person and investment per person are maximum.
B. Marginal productivity of capital is equal to the rate of growth of population.
C. Marginal productivity of capital is equal to saving ratio.
D. Elasticity of output with respect to capital is equal to saving ratio.
Answer:A
Which one of the following is not a correct interpretation of the Golden Rule of Accumulation? It is that capital per person at which
A. Savings per person and investment per person are maximum. B. Marginal productivity of capital is equal to the rate of growth of population. C. Marginal productivity of capital is equal to saving ratio. D. Elasticity of output with respect to capital is equal to saving ratio.