The Implication of the Solow Model Is That Economic Growth

question 119

Multiple Choice

The implication of the Solow model is that economic growth is sustainable when ________.

• A) the ratio of physical capital stock to GDP remains constant as the economy grows over time
• B) the ratio of physical capital stock to GDP decreases as the economy grows over time
• C) the ratio of saving rate to depreciation rate remains constant as the economy grows over time
• D) the ratio of saving rate to depreciation rate increases as the economy grows over time

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Definitions:

Symbolic Structure

The use of symbols and signs in a systematic way to represent ideas or concepts in communication.

Underextension

Underextension is a language development error wherein a child uses a word too narrowly, applying it to a smaller range of objects or situations than is appropriate.

Red

A primary color that is often associated with intensity, passion, or danger.

Telegraphic Speech

A form of communication typically used by young children, involving simple, concise sentences that omit non-essential words.