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In the Solow Model, Defining sˉ\bar { s } As the Saving Rate, Yt as Output, and It as the Saving

Question 40

Multiple Choice

In the Solow model, defining sˉ\bar { s } as the saving rate, Yt as output, and It as investment, consumption is given by:


A) Ct=sˉItC _ { t } = \bar { s } I _ { t }
B) Ct=(1sˉ) C _ { t } = ( 1 - \bar { s } )
C) Ct=(1sˉ) YtC _ { t } = ( 1 - \bar { s } ) Y _ { t }
D) Ct=(1sˉ) YtItC _ { t } = ( 1 - \bar { s } ) Y _ { t } - I _ { t }
E) Cz=sˉYtC _ { z } = \bar { s } Y _ { t }

Correct Answer:

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