In the Solow Model, an increase in the saving rate will result in:

Name: In the Solow Model, an increase in the saving rate will result in:
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According to the Solow Model, an increase in the saving rate leads to an increase in the steady-state level of capital per worker (K*) and output per worker (Y*). This is represented by an upward shift in the sY line, as a higher saving rate allows for more investment and capital accumulation.

In the Solow Model, an Increase in the Saving Rate