In a Growth Model with Endogenous Population Growth and an Investment

question 46

Multiple Choice

In a growth model with endogenous population growth and an investment requirement that rises slowly at first then rises sharply and eventually flattens out, we can get

• A)three steady-state equilibria, only one of which is stable
• B)three steady-state equilibria, only two of which are stable
• C)three steady-state equilibria, all of which are stable
• D)one stable steady-state equilibrium, but only if the savings rate is high enough
• E)both B and D are possible

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Definitions:

Ketones

Organic compounds characterized by a carbonyl group (C=O) bonded to two carbon atoms.

Imines

Chemical compounds characterized by the presence of a carbon-nitrogen double bond, with the nitrogen atom connected to a hydrogen atom or an organic radical.