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One of the Problems in a Country Achieving Its Steady-State

Question 45

Multiple Choice

One of the problems in a country achieving its steady-state level in the Solow model is that:


A) short-term saving must be sacrificed in order to increase living standards in the long term.
B) short-term consumption must be sacrificed in order to increase living standards in the long term.
C) short-term investment must be sacrificed in order to increase living standards in the long term.
D) future generations will need to cut back on consumption in the long term.

Correct Answer:

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