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.

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