According to the Solow model, an increase in the capital—labor ratio will

A) always reduce steady-state consumption per worker.
B) always increase steady-state consumption per worker.
C) reduce steady-state consumption per worker if the capital—labor ratio is below the Golden rule capital stock.
D) increase steady-state consumption per worker if the capital—labor ratio is below the Golden rule capital stock.

D

Economics

You might also like to view...

The Fed is not owned by the government

Indicate whether the statement is true or false

Economics

The largest category of federal spending is for:

A. health care. B. science, space, and technology. C. pensions and income security. D. national defense.

Economics