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In the Solow Model, Investment, It, as a Function of Saving

Question 70

Multiple Choice

In the Solow model, investment, It, as a function of saving, sˉ\bar { s } , and output, Yt=F(Kt,Lˉ) Y _ { t } = F \left( K _ { t } , \bar { L } \right)
, is written as:


A) It=sˉ/[F(Kt,Lˉ) ]I _ { t } = \bar { s } / \left[ F \left( K _ { t } , \bar { L } \right) \right]
B) lt=sˉF(Kt,Lˉ) l _ { t } = \bar { s } F \left( K _ { t } , \bar { L } \right)
C) It=(1sˉ) [F(K,Lˉ) ]I _ { t } = ( 1 - \bar { s } ) [ F ( K , \bar { L } ) ]
D) It=sˉF(Kt,Lˉ) I _ { t } = \bar { s } - F \left( K _ { t } , \bar { L } \right)
E) It=sˉ+F(Kt,Lˉ) I _ { t } = \bar { s } + F \left( K _ { t } , \bar { L } \right)

Correct Answer:

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