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    Exam 8: Why Do Economies Grow?
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    In the Solow Model, If Total Saving Exceeds Depreciation
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In the Solow Model, If Total Saving Exceeds Depreciation

Question 13

Question 13

Multiple Choice

In the Solow model, if total saving exceeds depreciation,


A) capital deepening stops.
B) gross investment is negative.
C) real wages decrease.
D) capital stock increases.

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