Using the Ramsey-Cass-Koopmans Model, what policy would best improve the economic development of a country?   1) to encourage its citizens to save   2) to gift/aid the country with items that support its production capacity (machineries, harbours, ..)   3) to encourage/transfer know-how and productivity on how to extract outputs from inputs (R&D, patents, institutions, ..)   What does the Ramsey model suggest about this question? Explain in detail, supporting your answer with graphs, being explicit about the dynamics of the model and about how you interpret the policy within the model?

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