In the Solow model,if a country's saving rate increases,the country:
A)moves from a relatively low steady state to one that is lower.
B)moves from a relatively low steady state to one that is higher.
C)moves from a relatively high steady state to one that is lower
D)moves from a relatively low steady state to one that is higher
E)stays at a constant steady state

Question

Quizplus · Accepted Answer

In the Solow model, an increase in the saving rate leads to a higher steady state level of capital per worker, which results in a higher steady state level of output per worker.

In the Solow Model,if a Country's Saving Rate Increases,the Country