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The Condition for Balanced Growth in Solow's Neoclassical Growth Model

Question 21

Multiple Choice

The condition for balanced growth in Solow's neoclassical growth model states


A) net saving must equal net investment.
B) the capital-output ratio equals the ratio of the saving rate to the growth rate of the labor force.
C) the capital stock exceeds the saving rate by the same factor as output exceeds the growth rate of the labor force.
D) all of the above.
E) none of the above.

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