According to the Solow model of economic growth, if per capita savings, s (Y/N)0, exceeds required steady state investment, (n + d) K/N, then
A) per capita output declines.
B) capital per capita increases.
C) capital per capita decreases.
D) steady state growth characterizes the economy.
B
Economics
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To raise economic development, developing countries should
A) focus on producing service goods. B) produce goods that are capital intensive and not labor intensive. C) not focus on economic growth. D) focus on their comparative advantage.
Economics
What is the underground economy and how could it hurt an economy? How does it hurt developing economies?
What will be an ideal response?
Economics