In the Solow model,if net investment is positive,
A)capital accumulation is zero.
B)capital accumulation is negative.
C)capital accumulation is positive.
D)Not enough information is given.
E)savings are negative.

Question

Quizplus · Accepted Answer

In the Solow model, net investment represents the addition to the capital stock. If net investment is positive, it means that the capital stock is increasing and therefore capital accumulation is positive.

In the Solow Model,if Net Investment Is Positive