According to the Solow model, countries with higher savings rates have higher levels of
A) investment.
B) output.
C) per capita GDP.
D) All of the answers are correct.

Question

Quizplus · Accepted Answer

According to the Solow model, savings rates directly impact investment levels, which in turn impact output and per capita GDP. Therefore, higher savings rates lead to higher levels of investment, output, and per capita GDP, making option D the correct answer.

According to the Solow Model, Countries with Higher Savings Rates