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

Question 28

Multiple Choice

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


A) It=(1sˉ) I _ { t } = ( 1 - \bar { s } )
B) It=sˉYtI _ { t } = \bar { s } Y _ { t }
C) It=(1sˉ) CtI _ { t } = ( 1 - \bar { s } ) C _ { t }
D) It=sˉYtCtI _ { t } = \bar { s } Y _ { t } - C _ { t }
E) lt=(1sˉ) Ytl _ { t } = ( 1 - \bar { s } ) Y _ { t }

Correct Answer:

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