According to the Solow Model, an increase in saving rate will always result in an increase in output.

Name: According to the Solow Model, an increase in saving rate will always result in an increase in output.
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The Solow Model suggests that an increase in the saving rate will initially increase output, but in the long run, the economy will reach a new steady state where output growth is determined by technological progress, not the saving rate.

According to the Solow Model, an Increase in Saving Rate