If the Depreciation and Saving Rates Are Constant, the Economy

question 111

Multiple Choice

If the depreciation and saving rates are constant, the economy eventually will reach the steady state in the Solow model because of:

• A) the lack of productivity.
• B) increasing returns to capital in production.
• C) constant returns to capital in production.
• D) diminishing returns to capital in production.
• E) increasing returns to labor in production.

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