 Equation (1) says that if consumption is \(C(t)\), investment is what remains of output. So, Ramsey’s problem can be cast equally as, “How much of a nation’s output should it consume?” If consumption is less than output at \(t\) (i.e., \(C(t) \lt F(K(t))\), investment is positive (i.e., \(dK(t)/dt \gt 0)\) and the stock of capital increases; but if consumption exceeds output at \(t\), investment is negative, which means capital is eaten into and the stock declines (i.e., \(dK(t)/dt \lt 0).\) We now imagine that Government House is advised by a “socially-concerned citizen,” the person being someone who is trying to determine the right balance between the economy’s consumption and investment at each date. We shall call that person the decision maker, or DM. Ramsey imagined that DM is a Classical-Utilitarian.