In the revised version of the Solow growth model the optimal level of the capital stock per worker depends on:
A)monetary growth.
B)government spending.
C)the saving rate.
D)all of the above.

Question

Quizplus · Accepted Answer

In the revised version of the Solow growth model, the optimal level of the capital stock per worker depends on the saving rate. This means that increasing the saving rate will lead to a higher level of capital stock per worker and ultimately higher economic growth. Monetary growth and government spending may also affect economic growth, but they are not directly related to the optimal level of capital stock per worker.

In the Revised Version of the Solow Growth Model the Optimal