6. In the Solow model, a decrease in the capital depreciation rate: O Increases the saving rate. O Increases consumption per capita and decreases investment per capita. O Increases savings per capita but decreases investment per capita. O Note of the above.

6. In the Solow model, a decrease in the capital depreciation rate: O Increases the saving rate. O Increases consumption per capita and decreases investment per capita. O Increases savings per capita but decreases investment per capita. O Note of the above.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section: Chapter Questions

Problem 4CQQ

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Concept explainers

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.

Question

6. In the Solow model, a decrease in the capital depreciation rate:
O Increases the saving rate.
O Increases consumption per capita and decreases investment per capita.
O Increases savings per capita but decreases investment per capita.
O Note of the above.

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