Buffaloville starts out with a saving rate of 0.4. We choose to change the saving rate at
Period 60. A 20 percentage point drop means the saving rate is now 0.2.
Following the same procedure, first, we use formulas to calculate the new steady state
values of capital, income, consumption per worker, denoted by k*, y* and c*.
These are the k, y and c values at Period 60. As we can see, the current k, y and c are all
greater than the new steady state values, so we predict that after period 60, k, y and c will
all decreases until they reach the steady state level.