In the Solow model, it is assumed that a(n) ________ fraction of capital depreciates regardless of the capital stock.
A) increasing
B) constant
C) decreasing
D) undetermined
E) None of these answers are correct.

Question

Quizplus · Accepted Answer

The Solow model assumes that there is a constant fraction of capital that depreciates regardless of the capital stock. This assumption is based on the idea that capital goods wear out over time and need to be replaced or repaired.

In the Solow Model, It Is Assumed That A(n) ________