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According to the Solow Model,an Increase in the Capital-Labor Ratio

Question 11

Multiple Choice

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.

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