If the Saving Rate Increases in the Solow Growth Model

question 33

Multiple Choice

If the saving rate increases in the Solow growth model, then in the steady state the growth rate of capital per worker is:

• A)constant.
• B)unchanged.
• C)zero.
• D)all of the above.

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Definitions:

Blood Islands

Clusters of developing blood cells and vessels found in the embryonic yolk sac.

Sinus Venosus

End of the embryonic cardiac tube where blood enters the heart; becomes a portion of the right atrium, including the SA node.

Pharynx

Upper expanded portion of the digestive tube between the esophagus below and the oral and nasal cavities above and in front.

Thyroid Gland

Endocrine gland located inferior to the larynx and consisting of two lobes connected by the isthmus; secretes the thyroid hormones triiodothyronine (T3) and tetraiodothyronine (T4).