One of the Problems in a Country Achieving Its Steady-State

question 23

Multiple Choice

One of the problems in a country achieving its steady-state level in the Solow model is that:

• A) short-term saving must be sacrificed in order to increase living standards in the long term.
• B) short-term consumption must be sacrificed in order to increase living standards in the long term.
• C) short-term investment must be sacrificed in order to increase living standards in the long term.
• D) future generations will need to cut back on consumption in the long term.