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:

Liquidated Damages

A predetermined sum agreed upon in a contract, payable as compensation for failure to perform specific acts or to fulfill certain conditions.

Doctrine Of Part-Performance

A legal concept in contract law that allows an unwritten contract to be enforced if one party has taken significant steps to perform their part.

Quantum Meruit

A doctrine in contract law that allows a person to recover reasonable value of services rendered, when a contract does not exist or is unclear, based on the idea of preventing unjust enrichment.

Abandoned Contract

A contract that is no longer active because all parties have ceased to perform their obligations.