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-In Figure 5

Question 106

Multiple Choice

  -In Figure 5.1,the capital stock at K1 is not the steady state because: A) the saving rate is too low. B) the saving rate is too high. C) the depreciation rate is too low. D) gross investment is higher than capital depreciation. E) gross investment is lower than capital depreciation.
-In Figure 5.1,the capital stock at K1 is not the steady state because:


A) the saving rate is too low.
B) the saving rate is too high.
C) the depreciation rate is too low.
D) gross investment is higher than capital depreciation.
E) gross investment is lower than capital depreciation.

Correct Answer:

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