QUESTION 4 In the Solow model, if a country's saving rate increases, the country: a. Stays at a constant high steady state b. Stays at a constant low steady state C. Moves from a relatively low steady state to one that is higher d. Moves from a relatively low steady state to one that is lower, e. Moves from a relatively high steady state to one that is lower Clear my choice
QUESTION 4 In the Solow model, if a country's saving rate increases, the country:
a. Stays at a constant high steady state
b. Stays at a constant low steady state
C. Moves from a relatively low steady state to one that is higher
d. Moves from a relatively low steady state to one that is lower,
e. Moves from a relatively high steady state to one that is lower Clear my choice
If the current capital stock per person in South Korea is greater than the current capital stock per person in China and total factor productivity is the same in both countries, according to the Solow model: a. Both South Korea and China initially will grow at the same rate and have the same steady state
b. China initially will grow faster than South Korea, but each will have the same steady state
c.China initially will grow faster than South Korea and will have a higher steady state
d. China initially will grow slower than South Korea, but each will have the same steady state
е. China initially will grow faster than South Korea and will have a lower steady state
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