In the revised version of the Solow growth model the optimal level of the capital stock per worker depends on:
A)monetary growth.
B)the depreciation rate.
C)appreciation in the stock market.
D)all of the above.

Question

Quizplus · Accepted Answer

The optimal level of the capital stock per worker in the revised Solow growth model is determined by the depreciation rate, which is a factor that affects the rate at which the capital stock decreases over time. Monetary growth and appreciation in the stock market may affect the economy in different ways, but they do not directly influence the optimal level of capital stock per worker.

In the Revised Version of the Solow Growth Model the Optimal