In the Solow Growth Model,an Increase in the Marginal Propensity

question 29

Multiple Choice

In the Solow growth model,an increase in the marginal propensity to consume shifts the ________,with the implied change in the capital stock resulting in a ________ standard of living in the long run.

• A)steady-state investment line upward,higher
• B)steady-state investment line downward,higher
• C)national saving line upward,lower
• D)national saving line upward,higher
• E)national saving line downward,lower

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Definitions:

Balance Sheet

An outline that captures a company's assets, debts, and the equity of its shareholders at a distinct point, illustrating the company's financial standing.

Worksheet

An informal document used by accountants to prepare adjusting entries and to reconcile accounts in the preparation of financial statements.

Normal Balance

The side (debit or credit) of an account that is expected to have a greater value, depending on the account type.

Financial Statement

A written record that conveys the business activities and the financial performance of a company, including the balance sheet, income statement, and cash flow statement.