According to the Solow Model,an Increase in the Capital-Labor Ratio

question 11

Multiple Choice

According to the Solow model,an increase in the capital-labor ratio will

• A)always reduce steady-state consumption per worker.
• B)always increase steady-state consumption per worker.
• C)reduce steady-state consumption per worker if the capital-labor ratio is below the Golden rule capital stock.
• D)increase steady-state consumption per worker if the capital-labor ratio is below the Golden rule capital stock.

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