In the Solow model,it is assumed that a(n)__________ fraction of capital depreciates regardless of the capital stock.
A)increasing
B)constant
C)decreasing
D)undetermined
E)none of the above

Question

Quizplus · Accepted Answer

In the Solow model, it is assumed that a constant fraction of capital (denoted by delta) depreciates regardless of the capital stock. This is known as the exogenous depreciation assumption. Therefore, the correct answer is a constant fraction or option B.

In the Solow Model,it Is Assumed That A(n)__________ Fraction of Capital