One view of the consumption function is that workers have high propensities to consume and capitalists have low propensity to consume.

: One view of the consumption function is that workers have high propensities to consume and capitalists have low propensity to consume. To explore the implications of this view, suppose that an economy consumes all wage income and saves all capital income. Show that if the factors of production earn their marginal product, this economy reaches the Golden Rule level of capital