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★ѕραndavir ★ѕραndavir
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7 years ago
From an initial steady state, suppose a government policy increases the national saving rate, causing the capital stock to start growing faster than the population. With (K/N) now rising, the Solow growth model goes on to say that (Y/N)
A) will rise only so far, to where the increased requirement for new capital matches the increased saving.
B) will rise only temporarily, so long as the population growth rate remains constant.
C) will rise and keep on rising, so long as the national saving rate exceeds the population growth rate.
D) never does rise, since the government's policy does not affect either the population growth rate or the depreciation rate.
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Macroeconomics

Macroeconomics


Edition: 12th
Author:
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supersuinegsupersuineg
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6 years ago
A good answer to a tough question
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