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If the Saving Rate Increases in the Solow Growth Model

Question 43

Multiple Choice

If the saving rate increases in the Solow growth model, then in the steady state:


A) capital per worker and the growth of capital will be higher.
B) capital per worker will be higher but the growth rate of capital will remain the same at zero.
C) capital per worker will be higher but the growth rate of capital will be lower.
D) capital per worker will be lower but the growth rate of capital will be higher.

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