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In the Solow Growth Model of Chapter 7, the Economy

Question 6

Multiple Choice

In the Solow growth model of Chapter 7, the economy ends up with a steady-state level of capital:


A) only if it starts from a level of capital below the steady-state level.
B) only if it starts from a level of capital above the steady-state level.
C) only if it starts from a steady-state level of capital.
D) regardless of the starting level of capital.

Correct Answer:

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