In the Solow growth model,an increase in the marginal propensity to consume shifts the ________,with the implied change in the capital stock resulting in a ________ standard of living in the long run.

Question

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An increase in the marginal propensity to consume reduces savings, shifting the national saving line downward, leading to a lower capital stock and a lower standard of living in the long run.

In the Solow Growth Model,an Increase in the Marginal Propensity