Assume a Neoclassical Growth Model with Constant Returns to Scale

question 8

Multiple Choice

Assume a neoclassical growth model with constant returns to scale.Which of the following statements is TRUE?

• A)a declining population growth rate will increase per-capita income
• B)an increase in the savings rate will permanently increase the growth rate of output
• C)an increase in the depreciation rate will increase the capital-labor ratio
• D)technological advances will have no effect on the long-run growth rate of output
• E)none of the above

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