The Condition for Balanced Growth in Solow's Neoclassical Growth Model

question 17

Multiple Choice

The condition for balanced growth in Solow's neoclassical growth model states

• A) net saving must equal net investment.
• B) the capital-output ratio equals the ratio of the saving rate to the growth rate of the labor force.
• C) the capital stock exceeds the saving rate by the same factor as output exceeds the growth rate of the labor force.
• D) all of the above.
• E) none of the above.

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