In the Solow growth model of Chapter 7, the saving rate determines the allocation of output between:
A)saving and investment. output and capital.
B)consumption and output.
C)investment and
D)consumption.

Question

Quizplus · Accepted Answer

In the Solow growth model, the saving rate determines how much of the output is allocated to saving (and thus investment) and how much is left for consumption.

In the Solow Growth Model of Chapter 7, the Saving