Which savings rate maximizes output per worker

Reference no: EM13234706

given that an economy;s production function is Y=F(K,L)=K0.3L0.7. Assuming that the depreciation rate is 10%/year. What's the steady state capital per worker, output per worker, and consumption per worker for saving rates of 0%,5%, 10%, 15%, 20%, 25%? Which saving's rate maximizes output/worker? which maximizes consumption/worker?

Reference no: EM13234706

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