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In the Combined Solow-Romer Model, an Exogenous Increase in the Saving

Question 21

Multiple Choice

In the combined Solow-Romer model, an exogenous increase in the saving rate:


A) pushes the economy to a lower per capita output balanced growth path.
B) pushes the economy to a higher per capita output balanced growth path.
C) pushes the economy's growth rate of per capita output to infinity.
D) pushes the economy to a new steady-state level of per capita output.
E) has no impact on the growth rate or level of per capita output.

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