In the Steady State of Solow's Exogenous Growth Model, an Increase

question 37

Multiple Choice

In the steady state of Solow's exogenous growth model, an increase in the savings rate

• A) increases output per worker and increases capital per worker.
• B) increases output per worker and decreases capital per worker.
• C) decreases output per worker and increases capital per worker.
• D) decreases output per worker and decreases capital per worker.
• E) increases output per worker, reduces consumption per worker and decreases capital per worker.