In the Combined Solow-Romer Model, an Exogenous Increase in the Saving

question 4

Multiple Choice

In the combined Solow-Romer model, an exogenous increase in the saving rate:

• A) immediately increases the growth rate of per capita output, which eventually slows to its previous rate.
• B) immediately decreases the per capita output, but the growth rate does not change.
• C) increases the growth rate of per capita income, but eventually the economy reaches a new steady-state level of per capita output.
• D) immediately decreases the growth rate of per capita output, which eventually accelerates to a higher rate.
• E) has no impact on the growth rate or level of per capita output.

---

Definitions:

Insert Columns

An action or command in spreadsheet and word processing software that allows the user to add one or more vertical blocks to a table or document, increasing its width.

Normal View

A default viewing mode in many software applications, displaying content in a standard layout.

Excel Worksheet

A single spreadsheet within an Excel file, containing cells arranged in rows and columns where data and formulas can be entered.