If endogenous growth models are correct, a lower rate of growth in the long run could occur as a result of which of the following?
A) A lower rate of depreciation.
B) A redefinition of depreciation.
C) A lower rate of saving.
D) A redefinition of the steady state.
E) A redefinition of saving.

Question

Quizplus · Accepted Answer

Endogenous growth models suggest that growth is driven by factors such as human capital and technology, rather than just external factors like investment and savings. A lower rate of saving would result in less investment in these drivers of growth, leading to a lower rate of growth in the long run. The other options do not directly relate to endogenous growth models and their impact on the long-run growth rate.

If Endogenous Growth Models Are Correct, a Lower Rate of Growth