If the Saving Rate Increases in the Solow Growth Model

question 38

Multiple Choice

If the saving rate increases in the Solow growth model, then during the transition to the steady state:

• A)the growth rate of capital per worker will increase.
• B)the growth rate of capital per worker will decrease.
• C)the growth rate of capital per worker is constant.
• D)the growth rate of capital per worker is zero.

---

Definitions:

Work-In-Process

Items or components that are in the process of being manufactured but are not yet completed products.

Lateness

The measure of delay between the scheduled completion time and the actual completion time of a task or project.

Desktop Publishing

The process of using software to create visual documents for print or digital distribution, combining text and graphics.

Johnson's Rule

A sequencing rule for minimizing the total processing time and setup time on two machines or processes.