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In the Solow Growth Model, with a Given Production Function

Question 97

Multiple Choice

In the Solow growth model, with a given production function, depreciation rate, no technological change, and no population growth, a higher saving rate produces a:


A) higher MPK in the new steady state.
B) higher steady-state growth rate of output per worker.
C) higher steady-state growth rate of total output.
D) higher steady-state level of output per worker.

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