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US Steady State and Golden Rule: In the US, the capital share of GDP is 45%,...

US Steady State and Golden Rule: In the US, the capital share of GDP is 45%, the average annual growth rate of GDP is 4%, the depreciation rate is 5% per year, and the capital-output ratio is estimated to be 3. Assuming, a constant returns production function (i.e., Cobb-Douglas) and that the US is in a steady state, answer the following:

a) Find the savings rate.

b) Find the MPk

c) Find the MPk if US moved to the Golden Rule steady state.

d) Find the Capital-Output ratio at the Golden Rule Steady State.

e) Find the saving rate at the Golden Rule Steady State.

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