Which of the following statements is correct regarding the Solow growth model?
A) Increases in living standards will be achieved automatically in the long run.
B) An increase in the saving rate will always result in a higher level of output per person.
C) An increase in the saving rate will always result in a higher level of consumption per person.
D) The optimal saving rate will be achieved as the community is no better off by additional saving.
Correct Answer:
Verified
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