In the Neoclassical growth model,if the saving rate s increases,what will happen to the long-run steady state equilibrium level of capital per worker?

Question

Quizplus · Accepted Answer

According to the Solow-Swan model, an increase in the saving rate will lead to an increase in the steady-state level of capital per worker. This happens because a higher saving rate means that more resources are channeled towards investment, which allows for the accumulation of more capital. Therefore, the correct answer is A) it increases.

In the Neoclassical Growth Model,if the Saving Rate S Increases,what