In the Solow Model, If a Country's Saving Rate Increases

question 20

Multiple Choice

In the Solow model, if a country's saving rate increases, the country:

• A) moves from a relatively low steady state to one that is lower.
• B) moves from a relatively low steady state to one that is higher.
• C) moves from a relatively high steady state to one that is lower.
• D) stays at a constant high steady state.
• E) stays at a constant low steady state.

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