-Consider the Solow model exhibited in Figure 5.3.
Which of the following is (are)true?
i.For any single country,the movement from point a to b is due to an increase in the saving rate,
)
ii.For any single country,the movement from point c to b is due to an increase in capital stock for the saving rate
)
iii.If
Stands for the saving rates in Countries 1 and 2,respectively,Country 2 has a lower saving rate.
A)i
B)ii
C)iii
D)i and ii
E)i,ii,and iii

Question

-Consider the Solow model exhibited in Figure 5.3.
Which of the following is (are)true?
i.For any single country,the movement from point a to b is due to an increase in the saving rate, 
)
ii.For any single country,the movement from point c to b is due to an increase in capital stock for the saving rate 
)
iii.If 
Stands for the saving rates in Countries 1 and 2,respectively,Country 2 has a lower saving rate.
A)i 
B)ii 
C)iii 
D)i and ii 
E)i,ii,and iii

Quizplus · Accepted Answer

The Answer of 
-Consider the Solow model exhibited in Figure 5.3.
Which of the following is (are)true?
i.For any single country,the movement from point a to b is due to an increase in the saving rate, 
)
ii.For any single country,the movement from point c to b is due to an increase in capital stock for the saving rate 
)
iii.If 
Stands for the saving rates in Countries 1 and 2,respectively,Country 2 has a lower saving rate.
A)i 
B)ii 
C)iii 
D)i and ii 
E)i,ii,and iii

-Consider the Solow Model Exhibited in Figure 5.3