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Which Feature of the Data Can the Solow Growth Model

Question 34

Multiple Choice

Which feature of the data can the Solow growth model NOT replicate?


A) In developed countries, there is steady growth in income per capita.
B) There is a widening gap between income levels across countries.
C) The investment rate is positively related to the income per worker.
D) An increase in the savings rate causes an increase in income per worker.
E) The population growth rate is negatively related to the income per worker.

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